Canada Stocks Remain Close To Record Highs, Buoyed By Commodity Prices; BMO On the Influence of Oil and Gas

Last Updated: Friday, June 25, 2021 4:06 PM | MT Newswires

Canada's main stock market, the Toronto Stock Exchange, added another modest 15 points on Friday to the near 50 points gained Thursday, leaving the resources heavy index sitting closer to recent all time record highs, buoyed by higher commodity prices. Reflecting that, BMO Economics in its 'Talking Points' note of this Friday said even with a pullback in lumber and copper, the upswing in oil and gas weighs heavier, lifting commodity indices to new cycle highs. "Thriving commodities do not suggest demand is lacking," the bank added.

BMO also noted that after the briefest of lulls, equities globally are close to all-time highs again. The World MSCI index was up almost 27% in the past 18 months. "While that growth rate as a standalone isn't extraordinary," it said, "recall that markets were already at record highs 18 months ago. That is extraordinary strength."

Among sectors today, Financials gained 0.5% while Energy was only slightly higher. Materials lost near 0.4%.

Of commodities, gold edged up, pushing closer back to the US$1,800 mark even as the U.S. dollar and bond yields rose. Gold for August delivery settled up $1.10 to US$1,777.80 per ounce in Comex trade.

Meanwhile, West Texas Intermediate crude oil closed higher as the market awaits next week's meeting of the OPEC+ group to see if they will move to increase supply as demand recovers from the pandemic. WTI crude for August delivery closed up $0.75 to US$74.05 per barrel, Marketwatch reported. August Brent crude, the global benchmark, was last seen up $0.60 to US$76.16 while Western Canada Select was up $0.72 to US$60.23 per barrel.

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