Published: Thu, September 21, 2017
Business | By Max Garcia

Rising crude prices power TSX higher

Rising crude prices power TSX higher

Canada's main stock index rose to six-week highs on Tuesday, buoyed by a broad rally led by financial and energy stocks, as investors cautiously awaited for clues from the U.S. Federal Reserve on its next move.

At 10:13 a.m. ET (1413 GMT), the Toronto Stock Exchange's S&P/TSX composite index rose 46.9 points, or 0.31 percent, to 15,339.87, with all 10 of the index's key groups higher.

The financial sector, which accounts for about a third of the index's weight, climbed 0.5 percent.

IGM Financial climbed 4.3 percent to 42.58 Canadian dollars (34.7 US dollars) after BMO raised its rating to outperform from market perform and increased its target price. It touched as high as 15,315.27 during the session, a level not reached since August 3.

The energy group climbed 0.1 percent as crude prices CLc1 LCOc1 pulled back from near-five-month highs in advance of USA data that is expected to show a build in crude inventories.

The materials group lost 0.6 percent, with gold miners the index's biggest drags.

With the Fed due to release its latest policy statement at 2 p.m. ET, caution prevailed.

"If they are slightly more dovish in their language, I think you could see a reversal in the banks, but I don't see a lot of activity", said Aaron Clark, portfolio manager at GW&K Investment Management. Forecasters expect the Fed to leave rates unchanged and stick to plans to raise rates in December.

The S&P financial index was up 0.2 per cent on Wednesday after rising 0.8 per cent in the previous session.

The S&P 500 index was down 1.01 points to 2,505.64 and the Nasdaq composite index was down 23.70 points to 6,437.62.

The index has recouped its summer losses, rebounding 2.7 percent since its trough 1-1/2 weeks ago.

The December copper contract was up two cents at to US$2.97 a pound and the October natural gas contract gained 12 cents at US$3.15 per mmBTU.

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