TSX Ends On Upbeat Note As Global Stocks Rise On Stimulus Hopes

(RTTNews) - The Canadian stock market ended on a bright note on Tuesday, extending gains to a fourth successive session, as shares from across various sectors moved higher amid hopes of more stimulus from global central banks.

The mood was upbeat right from the start thanks to comments by the European Central Bank chief Mario Draghi that suggested the central bank will provide more stimulus to prop up the euro area economy.

The U.S. Federal Reserve's two-day monetary policy meeting commenced on Tuesday. The Fed is widely expected to hold rates unchanged, but its accompanying statement is likely to provide clues about future rate cuts.

Crude oil's sharp rebound triggered hectic buying in the energy space and contributed substantially to the overall strength in the market.

The benchmark S&P/TSX Composite Index ended with a gain of 149.90 points, or 0.92%, at 16,503.35, after scaling a high of 16,527.28. The record high of 16,672.71, touched earlier this year, is now well within the striking range.

Mining, financial and telecom stocks were the other prominent gainers, besides key stocks in the energy space. A few shares from healthcare, consumer discretionary and consumer staples sections too posted solid gains.

Among the stocks in the financial space, Royal Bank of Canada (RY.TO) gained 1.6% and Toronto-Dominion Bank (TD.TO) advanced nearly 1.25%. Manulife Financial (MFC.TO) moved up 2.15% and Sun Life Financial Inc. (SLF.TO) ended 1.25% up.

Bank of Montreal (BMO.TO), Bank of Nova Scotia (BNS.TO), Canadian Imperial Bank of Commerce (CM.TO), National Bank of Canada (NA.TO) and CDN Western Bank (CWB.TO) gained 0.5 to 1%.

In the energy space, Baytex Energy (BTE.TO), Crescent Point Energy (CPG.TO), MEG Energy (MEG.TO), Whitecap Resources (WCP.TO), Enerplus Corp. (ERF.TO), Husky Energy (HSE.TO) and PrairieSky Royalty (PSK.TO) gained 2 to 5% on fairly strong volumes.

ARC Resources (ARX.TO), Tourmaline Oil Corp. (TOU.TO), Cenovus Energy (CVE.TO), Encana Corporation (ECA.TO) and Vermilion Energy (VET.TO) also posted notable gains.

Among miners, Canfor Corp. (CFP.TO) jumped more than 7.5%. Hudbay Minerals (HBM.TO) gained 5.5%. Yamana Gold (YRI.TO), Oceanagold Corp. (OGC.TO), Eldorado Gold (ELD.TO), Teck Resources (TECK.B.TO), Labrador Iron Ore (LIF.TO), Interfor Corp. (IFP.TO), West Fraser Timber (WFT.TO), First Quantum Minerals (FM.TO) and Kinross Gold (K.TO) gained 2.5 to 4.5%.

Lundin Mining Corp. (LUN.TO), Torex Gold Resources (TXG.TO), Methanex (MX.TO), Novagold (NG.TO), Kirkland Lake Gold (KL.TO), Endeavour Mining Corp. (EDV.TO) and Detour Gold (DGC.TO) also rose sharply.

In the information technology space, Sierra Wireless (SW.TO) jumped 2.8%, Constellation Software (CSU.TO) gained 1.7% and Celestica Inc. (CLS.TO) ended stronger by about 1.3%.

In economic news, data from Statistics Canada showed manufacturing sales in Canada declined 0.6% to $57.8 billion in April, following a 2.6% increase in March.

U.S. stocks ended on a strong note amid optimism about a potential U.S.-China trade deal and a near-term interest rate cut by the Federal Reserve.

The Dow and the Nasdaq both surged up 1.4%, while the S&P 500 ended 1% up.

Investor sentiment improved after U.S. President Donald Trump wrote on Twitter that had a "very good" telephone conversation with Chinese President Xi Jinping and will have an "extended meeting" at G20 summit next week.

European markets moved up fairly sharply and markets across the Asia-Pacific region also ended on a firm note on Tuesday.

In commodities, West Texas Intermediate Crude oil futures for July ended up $1.97, or 3.8%, at $53.90 an ounce.

Gold futures for August ended up $7.80, or 0.6%, at $1,350.70 an ounce, off the day's high of $1,358.50 an ounce, the highest level since mid April 2018.

Silver futures for July ended up $0.164, at $14.993 an ounce, while Copper futures for July settled at $2.7030 per pound, gaining $0.0565 for the session.