TSX Ends Modestly Higher

(RTTNews) - The Canadian stock market started off on a flat note on Wednesday, but gained in strength as the session progressed to eventually end modestly higher thanks to positive reaction to recent earnings and on hopes ahead of a fresh round of U.S.-China trade talks.

A rebound in crude oil prices triggered strong buying in the energy space and contributed to market's higher close.

The benchmark S&P/TSX Composite Index ended up 39.65 points, or 0.24%, at 16,397.40, after scaling a low of 16,347.20 and a high of 16,451.35 intraday.

On Tuesday, the index ended down 135.71 points, or 0.82%, at 16,357.75.

The Capped Energy Index ended up 1.72%. Canadian Natural Resources (CNQ.TO) and Suncor Energy (SU.TO) gained 1.7% and 2.2%, respectively.

Tourmaline Oil Corp. (TOU.TO) gained 3.7% and Vermilion Energy (VET.TO) advanced nearly 3.5% and Parex Resources (PXT.TO) jumped 5.2%.

Baytex Energy Corp. (BTE.TO) ended nearly 3% up, Crescent Point Energy (CPG.TO) jumped 5.23% and Whitecap Resources (WCP.TO) gained 4%.

Among the stocks in the Healthcare Index, Bausch Health Companies Inc. (BHC.TO) climbed up 3.75%. Aphria Inc. (APHA.TO) gained nearly 4% and Knight Therapeutics (GUD.TO) ended 2.04% up.

Among information technology stocks, Shopify Inc. (SHOP.TO) gained 1.3%, Constellation Software (CSU.TO) added 1.02% and Open Text Corporation (OTEX.TO) gained about 2.4%.

In the financial space, Royal Bank of Canada (RY.TO), Toronto-Dominion Bank (TD.TO) and Bank of Nova Scotia (BNS.TO) shed 0.3 to 0.7%.

Manulife Financial Corporation (MFC.TO) and Sun Life Financial Inc. (SLF.TO) gained about 1.2% and 1%, respectively.

In the materials space, IAM Gold Corporation (IMG.TO) plunged nearly 6%. B2Gold Corp. (BTO.TO) declined 3.2%, Barrick Gold Corporation (ABX.TO) shed 1.05% and Lundin Mining Corporation (LUN.TO) ended 0.75% down, while Kinross Gold Corporation (K.TO) gained 2.7% and First Quantum Minerals (FM.TO) ended nearly 4% up.

Air Canada (AC.TO) shares gained about 2.25% after the company announced that the Quebec Superior Court has approved the company's proposal to increase permitted foreign ownership levels to the levels permitted under Canada Transportation Act. This enables the company to raise foreign ownership to 49% from the exisiting 25%.

On the economic front, a report from Canada Mortgage and Housing Corporation said seasonally-adjusted housing starts rose to 235,460 units in April of 2019 from a downwardly-revised 191,981 units in March. The SAAR of urban starts increased by 24% in April to 220,387 units.

On Wall Street, the major averages ended mixed after a highly volatile session amid uncertainty ahead of a crucial round of trade talks between the U.S. and China in the coming days.

The Dow inched up by less than a tenth of a percent, while the Nasdaq and the S&P 500 declined 0.3% and 0.2%, respectively.

Slight optimism about trade talks pushed up stocks early on in the session. White House Press Secretary Sarah Sanders told reporters there are "indications" the Chinese would like to strike a deal, reiterating a claim President Donald Trump made on Twitter.

Trump noted Chinese Vice Premier Liu He will be a part of the talks, claiming the high-ranking official is "coming to the U.S. to make a deal."

"We'll see, but I am very happy with over $100 Billion a year in Tariffs filling U.S. coffers...great for U.S., not good for China!" Trump tweeted.

Trump also claimed China is attempting to pull back from previously negotiated terms of a trade deal in order to strike a new deal with a Democratic president that continues to rip off the U.S.

Meanwhile, China's Commerce Ministry said the country will take "necessary countermeasures" if the U.S. follows through on a planned increase in tariffs on Chinese goods on Friday.

Major European markets closed higher on earnings. Asian markets ended mostly weak with investors looking ahead to the fresh round of U.S.-China trade talks.

In commodities, West Texas Intermediate Crude oil futures for June ended up $0.72, or 1.2%, at $62.12 a barrel, after data from EIA showed an unexpected increase in crude stockpiles in the U.S. in the week ended May 3.

Gold futures for June ended down $4.20 at $1,281.40 an ounce.

Silver futures for July settled at $14.862 an ounce, down $0.064 from previous close, while Copper futures for July ended down $0.0110, at $2.7745 per pound.