BUSINESS

TSX Sets A Record High From Strong Energy Stocks, Loonie Loses Ground

Energy shares were "having a really good day," one trader said.

10/27/2017 20:22 EDT | Updated 10/27/2017 20:34 EDT
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Canada's largest stock index, the Toronto stock exchange, set a record high buoyed by gold and energy stocks on Friday.

Canada's largest stock index set a new record Friday buoyed by energy and gold stocks, as Wall Street advanced on strong technology earnings.

The S&P/TSX composite moved up 61.88 points to 15,953.51, breaking a previous high of 15,922.37 set on Feb. 21.

Shares in oil and gas companies led the charge, with energy "having a really good day," said Peggy Bowie, senior equity trader at Manulife Asset Management.

It's definitely, I would have to say, buoyancy on the hope of growth.Peggy Bowie, senior equity trader at Manulife Asset Management

The energy sector gained on average 2.61 per cent as the price of oil rose, with the December crude contract gaining US$1.26 to US$53.90 per barrel.

"It's definitely, I would have to say, buoyancy on the hope of growth," Bowie said of the commodity's upward movement.

The promise of growth in the American market coupled with OPEC's upcoming November meeting where members may decide to extend their production cuts is moving the price of oil, she said.

Shares in the gold sector also helped lift the TSX gaining 0.72 per cent on average, as the December gold contract advanced US$2.20 to US$1,271.80 an ounce.

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Commuters exit the Wall Street subway station near the New York Stock Exchange on Friday.

On Wall Street, two indices had record-setting growth. The S&P 500 index advanced 20.67 points to 2,581.07 and the Nasdaq composite index climbed 144.49 points to 6,701.26.

Meanwhile, the Dow Jones industrial average gained 33.33 points to 23,434.19.

"Today is a fascinating day because of tech," said Bowie. "Very strong numbers blew everything out of the water."

Two tech giants, Alphabet and Microsoft, beat analyst expectations with their most recent earnings reports, sending their stocks up 5.1 per cent and 7.5 per cent respectively. Intel, Apple and Facebook shares all moved up as well.

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Alphabet and Microsoft defied analyst expectations with their most recent earnings report which sent their stocks up 5.1 per cent and 7.5 per cent respectively.

The tech sector boost came on the same day the U.S. Commerce Department said the American economy grew three per cent between July and September. The GDP growth was larger than expected and didn't dip despite two major hurricanes during that time.

In currency markets, the Canadian dollar was trading at an average price of 77.68 cents US, down 0.26 of a U.S. cent.

Elsewhere in commodities, the December natural gas contract shed nearly nine cents to about US$2.96 per mmBTU and the December copper contract dropped about seven cents to roughly US$3.10 a pound.

With files from the Associated Press

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