DailyBubble News
DailyBubble News

The close: TSX higher on gains for energy and consumer staples

Canada’s main stock index, the S&P/TSX composite index, rose on Monday with gains in the energy and consumer staples sectors. The index closed up 0.3% at 21,061.88, just shy of the 20-month high it reached the previous week. Trading volumes were lower due to the Martin Luther King Jr. Day holiday in the U.S.

A Bank of Canada survey showed that Canadian firms saw a decline in order books due to interest rate impacts on consumer spending. Despite concerns over wages, inflation is expected to ease in the coming year. Analysts predict a potential interest rate cut in June.

The energy sector saw a 0.9% increase as oil prices rebounded. U.S. crude oil futures were down slightly at $72.50 a barrel. The Middle East conflict had limited impact on crude output, prompting profit-taking after last week’s gains.

The conflict also affected shipping routes, with several tanker owners avoiding the Red Sea. This disruption indirectly tightened the oil market by keeping 35 million barrels at sea to avoid the conflict zone.

In other news, frigid weather in the U.S. and Canada has led to a decrease in oil production. North Dakota oil output has fallen significantly due to extreme cold weather.

The European Central Bank cautioned against discussing interest rate cuts too soon. On the TSX, consumer staples and utilities sectors saw gains. Thomson Reuters Corp increased its offer to acquire Sweden’s Pagero, gaining control of 54% of the company.

Overall, the stock market showed positive movement, influenced by sector gains and economic factors both locally and globally.

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