Mining stocks high, loonie up half cent

Mining and healthcare stocks helped Canada’s main stock index close higher Wednesday along with U.S. markets, while the loonie gained ground following a smaller-than-expected trade deficit.

The 2.63 per cent climb in the S&P/TSX global base metals index came as the copper price once again rose on fears of a supply disruption. A labour dispute at the Escondida mine in Chile, the world’s largest copper mine, is driving concern and prices.

“That’s really what’s driving the metals space, it’s just the strong movement in copper that’s up over two per cent,” said Anish Chopra, managing director at Portfolio Management Corp.

Some cannabis stocks also saw a bump Wednesday as Aurora Cannabis Inc. climbed $1.08 or 12.4 per cent and Aphria Inc. closed up 63 cents or 5.18 per cent.

The S&P/TSX composite index closed up 61.68 points at 16,183.93 as the market saw broad gains outside of utilities and consumer staples.

In New York, the Dow Jones industrial average closed up 346.41 points at 25,146.39. The S&P 500 index ended up 23.55 points at 2,772.35 and the Nasdaq composite index was up 51.38 points at 7,689.24, hitting a record high for the third consecutive day.

The Canadian dollar averaged 77.44 cents US, up 0.48 of a US cent. The move came after Statistics Canada said the country’s merchandise trade deficit in April was halved to $1.9 billion compared with $3.9 billion in March. Economists had expected a deficit of $3.4 billion.

The smaller-than-expected deficit came as exports rose 1.6 per cent to a record $48.6 billion in April boosted by exports of metal and non-metallic mineral products, consumer goods and energy products. Meanwhile, imports fell 2.5 per cent in April to $50.5 billion as imports of motor vehicles and parts and consumer goods fell.

The trade data gave a short boost to the loonie but did little to sway the stock market, said Chopra.

“When you look at some of the data out there, certainly the Canadian dollar has reacted positively to news the Canadian trade deficit shrunk, but when you look at market movement we’re pretty flat.”

The July crude contract closed down 79 cents at US$64.73 per barrel and the July natural gas contract was up one cent at US$2.90 per mmBTU.

The August gold contract ended down 80 cents at US$1,301.40 an ounce and the July copper contract closed up six cents at US$3.26 a pound.