TSX jumps on oil and gold as U.S. takes hit

TORONTO • The Toronto stock market closed higher Wednesday as rising oil and gold prices offset disappointing economic data south of the border.

The S&P/TSX composite index closed up 40.11 points at 14,942.55 while the loonie rose 0.25 of a U.S. cent to US79.20¢.

In the U.S., markets were sharply lower amid a string of disappointing economic reports. The Dow Jones industrial average closed down 77.94 points at 17,698.18, the Nasdaq lost 20.66 points to 4880.23 and the S&P 500 was off 8.20 points at 2059.69.

“We were all expecting the economy to come out of this period on sustainable footing and a few data points seem to suggest that maybe we’re on shakier ground than we thought,” said Patrick Blais, senior portfolio manager at Manulife Asset Management.

On the commodity markets, the May crude oil contract was up US$2.49 at US$50.09 a barrel as U.S. domestic crude production fell for the first time since the end of January and delays were reported in negotiations with Tehran over Iran’s nuclear program.

A deal with Tehran could lead to reduced sanctions on the Middle East oil exporter and send even more oil flooding already glutted world markets.

“What’s good for oil is good for Canada,” Mr. Blais said.

Gold prices also rose sharply, with the June bullion contract up US$25 at US$1,208.10 an ounce.