The major stock index in Canada rose as increased crude Oil Prices prices boosted the energy sector, but a hawkish tone from the US Federal Reserve dulled gold’s luster.The S&P/TSX composite index finished at 21,072.20, up 32.54 points. The S&P 500 slid 4.53 points to 4,696.05, while the Nasdaq fell 19.30 points to 15,080.87.
The energy sector led the TSX up by 3%, with Vermilion Energy Inc. jumping 9.2% after crude Oil briefly hit $80 a barrel for the first time in over seven weeks.While underinvestment has held output in check, demand is increasing as the global economy normalizes, according to Anish Chopra, managing director of Portfolio Management Corp.
In an interview, he remarked, “You’re at that tipping point when people realize it’ll take years to rebuild some of that Oil supply, energy supply.” “However, the demand exists, and the price of Oil reflects this.”Short-term challenges like turmoil in Kazakhstan and supply interruptions in Libya are also eroding holiday gasoline price savings.The February Oil contract was up $1.61 to $79.46 a barrel, while the February natural gas contract was down seven cents to $3.81 per million British thermal units.
On Thursday, the Canadian dollar was trading at 78.49 cents US, down from 78.63 cents US the day before.The financial sector profited with the release of minutes from the Federal Reserve’s December meeting, in which members advocated an early removal of the stimulus and an increase in interest rates.Canadian Western Bank increased by 4.6 percent, Laurentian Bank increased by 2.3 percent, and CIBC increased by 2.1 percent.