Energy Stocks Lift TSX Higher

(RTTNews) - The Canadian stock market ended higher on Wednesday, with firm crude oil prices triggering some strong buying in the energy space.

The market opened on a firm note and stayed in positive territory right through the session amid optimism the U.S.-China trade talks will help reduce trade war tensions. Besides rising crude oil prices, strong third quarter results from Royal Bank of Canada aided sentiment.

Healthcare, materials and information technology shares were among the other prominent gainers.

The benchmark S&P/TSX index ended up 50.37 points, or 0.31%, at 16,347.34, after scaling a low of 16,322.78 and a high of 16,397.08 intraday. On Tuesday, the benchmark index ended down 34.06 points or 0.21% at 16,296.97, more than 100 points off the day's high.

The Capped Energy Index rose 1.69%. Vermilion Energy Inc. (VET.TO) gained about 2.85% and PrairieSky Royalty (PSK.TO) added 2.43%. Suncor Energy (SU.TO), Canadian Natural Resources (CNQ.TO), Encana Corporation (ECA.TO), Imperial Oil (IMO.TO), Crescent Point Energy (CPG.TO) and ARC Resources (ARX.TO) gained 1.5 to 1.7%.

Baytex Energy (BTE.TO) ended up 1.3%, MEG Energy Corp. (MEG.TO) jumped 7% and Precision Drilling Corporation (PD.TO) surged up 4.4%, while Enbridge Inc. (ENB.TO), Cenovus Energy (CVE.TO), Husky Energy (HSE.TO) and Tourmaline Oil Corp. (TOU.TO) ended higher by 0.4 - 1%.

Among gold stocks, IAMGOLD (IMG.TO) gained 1.85%, Goldcorp (G.TO) advanced nearly 2.5%, Kinross Gold (K.TO) added 1.35% and Barrick Gold (ABX.TO) ended 1.7% up.

The Capped Materials Index ended nearly 0.5% up. Teck Resources (TECK.B.TO) gained 1.7% and Agnico Eagle Mines (AEM.TO) advanced by 1.2%, while Methanex Corporation (MX.TO) added 2.5%.

The heavyweight Financial Index edged up 0.35%. Royal Bank of Canada (RY.TO) gained 1.35% on results. The bank reported net income of C$3.11 billion for third quarter, up 11% from the prior year. EPS was up 14% at C$2.10. The bank announced an increase to its quarterly dividend of 4% to C$0.98 per share.

Bank of Nova Scotia and Bank of Montreal (BMO.TO) gained 0.55% and 0.8%, respectively. Canadian Imperial Bank of Commerce (CM.TO) and Toronto-Dominion Bank (TD.TO) ended marginally higher, while National Bank of Canada (NA.TO) was slightly weak.

The Capped Healthcare index ended 1.55% up. Canopy Growth Corporation (WEED.TO) ended 3.7% up, extending recent strong gains. Bausch Health Companies Inc. (BHC.TO) climbed up 3.6% and Knight Therapeutics Inc. (GUD.TO) gained 1.6%. Extendicare (EXE.TO), Aurora Cannabis Inc. (ACB.TO) and Aphria Inc. (APH.TO) ended more than 1% down.

On the economic front, a report from Statistics Canada showed a 0.2% decrease in retail sales for June. Economists had been expecting an increase of 0.1 percent.

In economic news from U.S., existing home sales unexpectedly decreased in the month of July, according to a report released by the National Association of Realtors on Wednesday. NAR said existing home sales dropped by 0.7% to an annual rate of 5.34 million in July after falling by 0.6% to a rate of 5.38 million in June.

The continued decrease in existing home sales came as a surprise to economists, who had expected existing home sales to climb by 0.6%.

U.S. stocks ended lower, snapping a four-day winning streak, after the minutes from the Federal Open Market Committee's August meeting indicated a rate hike in September.

The market was also reacting to reports that U.S. President Donald Trump's former personal lawyer Michael Cohen pleaded guilty to campaign finance violations and other charges and Trump's former campaign chairman Paul Manafort was found guilty on five counts of tax fraud.

Markets in Asia ended on a mixed note overnight and major European markets too closed mixed after cautious moves by investors.

In commodities, crude oil futures for October delivery ended up $2.02, or 3.1%, at $67.86 a barrel, the highest settlement in almost two weeks. Oil futures then rose to $68.14 a barrel after EIA reported a larger than expected drop in U.S. crude inventories for the week ended August 17.

Natural gas for September were down 0.023 or 0.77% at $2.957 per million btu.

Gold futures for December ended up $3.30, or 0.3%, at $1,203.30 an ounce.

Silver futures for September ended down $0.016, at $14.750 an ounce, while copper futures for September settled at $2.6735 per pound, down $0.0220 from Tuesday's close.