Yahoo Finance TSX hits 2016 high
The Toronto Stock Exchange rose to its highest close of 2016 on Tuesday, as it finished with a gain of 33.27 points to hit 13,952.85.
The S&P/TSX composite index had been even higher this morning, trading as high as 14,025 at one point before coming back. The increase came after the TSX was closed for the Victoria Day holiday on Monday.
- From January: TSX in bear market below 12,500 as oil plunges
The index was pushed up on a good day for two of the biggest parts of Toronto's stock market — energy and financials, both of which were in positive territory.
Financials were up in part because of speculation that the U.S. central bank is getting ready to hike interest rates again at some point, something which would be good for banks.
"I think what is more important is the language if they do hike," Allianz portfolio adviser Shahzad Hasan said. "Do they continue or do they stop after June, and what is the trajectory for the Fed funds rate in 2017."
Bank earnings expected
Canada's big banks are set to reveal their latest quarterly earnings, starting with Bank of Montreal on Wednesday. After a gloomy start to the year, analysts are expecting some strong showings, with possibly a few dividend hikes. All five of Canada's biggest banks had higher stock prices on Tuesday.
Energy companies, meanwhile, were also broadly higher as oil gained 54 cents to close at $48.62 US a barrel. Oil is marching higher as the market is showing signs of coming back into balance, and Canadian names in particular are benefiting because they are all starting to restart idled production lost to the devastating wildfire in Northern Alberta.
The loonie slipped 0.13 of a U.S. cent to end at 76.07 cents US.
In New York, the Dow Jones Industrial Average shot up 213.12 points to close at 17,706.05.
