Tsx, oil and dollar close higher
The Toronto stock market closed higher Tuesday amid rising prices for oil and metals and disappointing earnings from pipeline giant TransCanada Corp.
The S&P/TSX composite index was ahead 40.87 points to 12,789.02 while the TSX Venture Exchange climbed 2.74 points to 1,198.94.
The Canadian dollar was up US0.16¢ to US99.73¢ as traders took in a statement by the Group of Seven leading industrialized countries, including Canada, which affirmed their commitment to exchange rates determined by markets and not government policy.
The statement came out prior to a weekend meeting of the Group of 20 finance ministers where exchange rates and the threat of a “currency war” are expected to feature heavily.
Recently, attention has centred on the Japanese yen, which dropped Monday to its lowest level against the U.S. dollar since May 2010. The Japanese government has set in motion a string of economic policies, such as a higher 2% target for Japanese inflation, that many in the markets think will lead to more money being created in Japan.
One parallel effect of that policy has been a rise in the euro, which threatens to hinder Europe’s economic recovery.
Despite the G7 statement, the yen re- mained stable as analysts observed that any country could claim that its loose monetary policy was aimed at helping the domestic economy, not setting the interest rate.
U.S. indexes were mainly positive as traders looked ahead to President Barack Obama’s state of the union address Tuesday evening. The Dow Jones industrials was up 47.46 points to 14,018.7, closing at its highest level of the year and coming within 1% of its record reached in October 2007.
The Nasdaq lost 5.51 points to 3,186.49, dragged down by a 2.5% decline in Apple stock. The S&P 500 index was ahead 2.42 points to 1,519.43.
TransCanada, which is currently seeking U.S. approval for the Keystone XL pipeline which would carry oilsands crude from Alberta to Texas, reported that its net income fell to $306 million or 43¢ per share.
The energy sector was the leading advancer, up 1% as the March contract on the New York Mercantile Exchange gained 48¢ to US$97.51 a barrel. Canadian Natural
Resources climbed $1.04 to $31.55. A U.S. agency has given the final approval required for the acquisition of Calgary-based Nexen Inc. by CNOOC, one of China’s largest energy companies.
The US$15.1-billion friendly takeover had broad implications in Canada and elsewhere, due to Nexen’s extensive holdings in Alberta’s oilsands, Gulf of Mexico and North Sea. Nexen shares gained 55¢ to $27.48.