Mining & Metals
TSX Closer: The Index Closes at Fresh Record High as Technology Stocks Rally
The S&P/TSX Composite Index closed at a fresh record high on Thursday as a strong rally in technology stocks helped lift the benchmark, offsetting weakness in base metals and lower oil prices.The index closed up 97.15 points, or 0.3%, to 36,759.29, with most sectors closing higher. Information Technology led gainers, up 3.1%, while Telecom and Energy were up 0.8% each. Base Metals closed down 2.8%.In commodities, West Texas Intermediate (WTI) and Brent crude fell on Thursday as weaker global demand forecasts and a sharp build in US crude inventories weighed on prices. Oil pared steeper losses later in the session after reports of a Houthi drone attack on Saudi Aramco's Jazan refinery renewed concerns over potential supply disruptions in the Middle East.September WTI crude oil contract settled down $2.02, or 2.4%, at $81.25 per barrel, while October Brent oil was last seen down $0.70, or 1.9%, at $87.28 per barrel.Meanwhile, December Comex gold futures dropped 1.4%, or $62.40, to $4,405.10 per ounce.In currencies, the US dollar edged lower 0.07% against the Canadian dollar, with USD/CAD at 1.3931 at last look.The Canadian dollar's medium-term recovery will likely depend less on oil prices and more on whether the broader economic recovery can be sustained, Commerzbank Research wrote in a Thursday note."It is only once the Canadian real economy has recovered sustainably that the Bank of Canada is likely to consider interest rate hikes, and it is only then that the CAD is likely to recover," wrote Commerzbank FX Analyst Michael Pfister.On the consumer front, Canadian spending remained resilient despite pressure from higher energy costs and weak real wage growth, with RBC card data showing an increase in expenditures.Retail sales, excluding gasoline stations, rose 2.4% in Q2 from Q1, while spending on essentials and discretionary services both increased 2.2%, said RBC Economics. Discretionary goods spending also rebounded 3.7%, driven by stronger household, construction and apparel purchases.UBS Global Research said it expects the Canadian headline consumer price index to tick higher next week, but the bank sees the increase as temporary. The July headline CPI is forecast to rise 0.4% on a monthly non-seasonally adjusted basis. Statistics Canada is slated to release the July CPI on Monday.In stocks Brookfield (BN.TO) closed up C$0.44 to C$62.82 after posting Q2 net income of $0.14 per share from $0.10 in the previous year. Revenue for the quarter ended June 30 rose to $19.41 billion from $18.08 billion.
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