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TSX rises on oil and gold prices but not enough to salvage losing week

The TSX ticker is shown in Toronto on May 10, 2013. THE CANADIAN PRESS/Frank Gunn
May 03, 2019 - 2:08 PM

TORONTO - Canada's main stock index rebounded Friday on higher metals and oil prices and a strong U.S. jobs report, but still ended the week lower.

The S&P/TSX composite index closed up 83.55 points at 16,494.43, but was down 119 points for the week, following four days of losses.

Ten of the 11 major sectors were up on the day, led by materials and energy on higher commodity prices.

The June gold contract was up US$9.30 at US$1,281.30 an ounce and the July copper contract was up 3.95 cents at US$2.82 a pound.

The June crude contract was up 13 cents at US$61.94 per barrel and the June natural gas contract was down 2.2 cents at US$2.57 per mmBTU.

The metals sector's increase was led by Sherritt International and Turquoise Hill Resources Ltd., which gained 7.1 and 4.6 per cent respectively.

Energy partially rebounded from crude price decreases that have seen the price of West Texas Intermediate drop by more than two per cent this week, but still remains up 36.4 per cent year-to-date.

"I think the recent pullback was a probably a little overdone," said Kevin Headland, senior investment Strategist at Manulife Investments, adding there is still some uncertainty regarding supply and demand.

The sector's gains were led by Baytex Energy Corp., whose shares gained 12.9 per cent on the day.

The Canadian dollar traded at an average of 74.47 cents US compared with an average of 74.28 cents US on Thursday.

In New York, the Dow Jones industrial average was up 197.16 points at 26,504.95, but was down about 40 points on the week. The S&P 500 index was up 28.12 points at 2,945.64, while the Nasdaq composite was up 127.22 points at 8,164.00.

U.S. markets responded strongly to an April jobs report that beat expectations as 263,000 jobs were added, pushing the unemployment rate to a five-decade low of 3.6 per cent.

"So I think it's a good news story all around and I think markets are reacting to that positive news," Headland said in an interview.

The impact was less pronounced in Canada, which will release its own employment numbers next week.

"I think it's a read-through to what Canada's going to produce next week," he said of the U.S. jobs numbers.

About 80 per cent of U.S. companies have released first-quarter results, with most beating reduced expectations. Canada is about halfway through what has been a muted season so far, he said.

Companies in this story: (TSX:S, TSX:TRQ, TSX:BTE, TSX:GSPTSE, TSX:CADUSD=X)

News from © The Canadian Press, 2019
The Canadian Press

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