Financials gain after robust results from U.S. banking giants
Energy stocks fall as oil prices sink
Industrials get a boost from rising Bombardier shares
Jan 15 (Reuters) – Canada’s main stock index hit a record on Thursday, as the financial sector mirrored gains in Wall Street banks, even as falling oil and precious metal prices dragged down commodity-linked shares.
The S&P/TSX Composite Index (.GSPTSE), opens new tab was up 0.35% at 33,029.56 points as of 10:53 a.m. ET.
U.S. stock indexes were lifted primarily by a tech-led rally after chipmaker TSMC’s better-than-expected quarterly results, while robust earnings from banking giants Morgan Stanley and Goldman Sachs provided an additional boost.
The industrials sub-index (.GSPTTIN), opens new tab also rose 0.9%, boosted by Bombardier’s (BBDb.TO), opens new tab 2.8% jump after the business aircraft manufacturer announced a new $100 million manufacturing center in Dorval, Montreal.
Energy stocks (.SPTTEN), opens new tab lost 0.8% as oil prices , plunged on Thursday, snapping a five-day rally after U.S. President Donald Trump said the killing of protesters in Iran was ending, easing concerns over possible U.S. military intervention and supply disruptions.
The materials index (.GSPTTMT), opens new tab, which includes precious metal miners, dipped 0.2% as gold and silver prices pulled back from Wednesday’s record highs, even though analysts believe demand will persist.
“The theme this year has been outperformance from Canadian equities because resources have continued to perform well,” said Steve Palmer, chief investment officer at AlphaNorth Asset Management
“Investor demand is going to continue because of the uncertain situation in the world now and a move away from the US dollar.”
On the political front, Canadian Prime Minister Carney hailed improving ties with China as well as President Xi Jinping’s leadership, declaring that the two nations were charting a new course in cooperation at a time of global division and disorder.
Canada has intensified efforts to diversify its export markets after Washington imposed tariffs on it last year.
Reporting by Utkarsh Tushar Hathi; Editing by Jonathan Ananda
