TSX Extends Gains To 8th Session

(RTTNews) - After a somewhat listless start, the Canadian stock market gained in strength as the day progressed and ended on a firm note on Tuesday, extending gains to an eighth successive session.

Higher crude oil prices and slightly easing concerns about China's economy lifted the market up.

Markets across Asia and Europe moved higher on Tuesday after China's finance ministry said that it would implement larger tax and fee cuts to help reduce burdens for small firms and manufacturers and the central bank said that it would stick with its prudent monetary policy to support growth.

Energy stocks moved higher as easing worries about energy demand and OPEC-led supply cuts lifted crude oil prices. Information technology and bank shares too contributed to market's rise.

The benchmark S&P/TSX Composite Index ended up 70.75 points, or 0.47%, at 15,046.28, after scaling a low of 14.966.46 and a high of 15,079.77 in the session.

On Monday, the index ended up 36.35 points, or 0.24%, at 14,975.53.

The Capped Energy Index ended up 1.88%. Canadian Natural Resources (CNQ.TO) and Suncor Energy (SU.TO) ended stronger by about 2% and 2.6%, respectively. Husky Energy (HSE.TO) jumped 4.75% and PrairieSky Royalty (PSK.TO) gained 2.6%

Cenovus Energy (CVE.TO), Imperial Oil (IMO.TO), Vermilion Energy (VET.TO) and ARC Resources (ARX.TO) gained 1 to 1.7%. BayTex Energy (BTE.TO) and Enbridge (ENB.TO) ended with strong gains.

Crescent Point Energy (CP.TO) declined by 1.3% after the company slashed its 2019 capital budget by 30%, citing recent decline in oil prices as the reason for the lower guidance.

Among bank stocks, Toronto-Dominion Bank (TD.TO) gained about 1% and Bank of Montreal (BMO.TO) ended 0.85% up. Royal Bank of Canada (RY.TO), Bank of Nova Scotia (BNS.TO) and Canadian Imperial Bank of Commerce (CM.TO) ended modestly higher, while National Bank of Canada (NA.TO) edged down marginally.

The Capped Information Technology Index ended up 1.5%. Shopify Inc. (SHOP.TO) gained more than 3.5%, Kinaxis Inc. (KXS.TO) advanced by 2.4% and CGI Group (GIB.A.TO) added 1.35%.

A few shares from utilities section moved higher. Fortis Inc. (FTS.TO), Emera Incorporated (EMA.TO), AltaGas (ALA.TO) and ATCO (ACO.X) gained 1 to 1.5%. Brookfield Infrastructure Partners moved up 3.3% and Algonquin Power & Utilities Corp. (AQN.TO) advanced by 2.4%.

Barrick Gold Corporation (ABX.TO) declined by 3.7%, Agnico Eagle Mines (AEM.TO) shed about 1.8%, Goldcorp Inc. (G.TO) and Kirkland Lake Gold (KL.TO) both eased by about 2.1%.

Among healthcare shares, Canopy Growth Corporation (WEED.TO) ended 2.7% down, Cronos Group Inc. (CRON.TO) declined by 4.7% and Aphria Inc. (APHA.TO) ended lower by about 5%, while Aurora Cannabis Inc. (ACB.TO) ended nearly 3% up and Extendicare (EXE.TO) added 1.4%.

Magna International Inc (MG.TO) announced that its 2019 revenue will be impacted by the sale of its fluid pressure and controls business and stronger dollar. The stock recovered after initial weakness and ended just marginally down.

Manulife Financial Corporation (MFC.TO) and TransCanada Corporation (TRP.TO) ended notably higher.

In economic news, a report from the Canadian Real Estate Association said national home sales fell 2.5% in December, from a month earlier.

On Wall Street, the major averages all closed notably higher, although the tech-heavy Nasdaq outperformed its counterparts. While the Nasdaq soared 1.7%, the S&P 500 jumped 1.1% and the Dow climbed 0.7%.

On the U.S. economic front, a report released by the Labor Department that producer price index for final demand dipped by 0.2% in December after inching up by 0.1% in November. Economists had expected prices to slip by 0.1%.

A separate report released by the Federal Reserve Bank of New York showed New York manufacturing activity grew at its slowest pace in over a year in the month of January. The New York Fed said its general business conditions index slumped to 3.9 in January after tumbling to a revised 11.5 in December.

European markets ended mostly higher on Tuesday, with traders indulging in some late buying ahead of the crucial vote on British Prime Minister Theresa May's Brexit plan. Markets gained today despite a report from Germany's Federal Statistical Office showing the largest economy in Europe grew at the slowest pace in five years in 2018.

Asian markets ended mostly higher on Tuesday with investors reacting positively to Citigroup's results and news about China's measures to counter slowing growth.

In commodities, crude oil futures for February ended up $1.60, or 3.2%, at $52.11 a barrel.

Gold futures for February ended down $2.90, or 0.2%, at $1,288.40 an ounce.

Silver futures for March settled at $15.620 an ounce, down $0.066 from previous close and Copper futures for March ended at $2.634, down slightly from Monday's close.