(MENAFN- Baystreet.ca)
TSX off on Right Foot
Nexus, Vermilion in Focus
Canada's main stock index opened higher on Tuesday, as the energy sector hit its highest in more than five years on soaring oil prices, although investors remained cautious as rising energy costs fueled inflationary concerns.
The S&P/TSX Composite Index gained 66.83 points at the outset to 21,371.23.
The Canadian dollar dipped 0.2 cents to 77.92 cents U.S.
CIBC raised the target price on Allied Properties REIT to $54.00 from $53.00. Units in Allied picked up 22 cents to $45.46.
National Bank initiated coverage on Nexus REIT with an outperform rating. Units in Nexus acquired six cents to $11.94.
RBC raised the target price on Vermilion Energy to $26.00 from $25.00. Vermilion shares galloped $1.74, or 6.2%, to $29.99.
On the economic front, Statistics Canada reported Canada's merchandise imports fell 7.4%, with decreases observed in nearly all product sections.
Meanwhile, exports were down 0.2%. As a result, Canada's merchandise trade balance went from a $1.6 billion deficit in December 2021 to a $2.6-billion surplus in January 2022.
Alberta will drop its provincial fuel tax to give consumers some relief from soaring energy prices, Premier Jason Kenney said on Monday, as he also urged the United States to revive the canceled Keystone XL oil pipeline.
ON BAYSTREET
The TSX Venture Exchange picked up 6.58 points to 846.79.
Seven of the 12 TSX subgroups went downward, primarily information technology, down 1%, while health-care ailed 0.7%, and consumer discretionary stocks weakened 0.6%.
The five gainers were led by energy and gold, each climbing 1.9%, while materials improved 1.1%.
ON WALLSTREET
The S&P 500 moved lower on Tuesday following the benchmark's worst day since October 2020, as investors remained on edge about surging commodity prices and slowing economic growth stemming from Russia's invasion of Ukraine.
The Dow Jones Industrials were down 2.05 points to 32,815.33
The S&P 500 settled 7.11 points to 4,193.98.
The NASDAQ Composite lost 24.66 points to 12,806.31.
Certain mega-cap technology stocks dragged on the NASDAQ on Tuesday. Netflix lost 1.8%, Microsoft fell more than 2%. Apple and Amazon lost more than 1% each.
Rising prices for oil, gasoline, natural gas, and precious metals like nickel and palladium are fueling concerns about a slowdown in global growth. Paired with soaring inflation, investors could be facing a risk-off period.
Shares of Chevron strengthened 2.6% and Exxon rose 2.5% Plus, solar and other clean energy stocks moved higher as the continued rise in oil prices shifted focus toward alternative energy sources. Enphase Energy headed higher 3.9% and SunPower added 6.8%.
Shell apologized for buying cheap Russian oil and said it was divesting itself of all hydrocarbon holdings in the country. Russia itself warned that crude prices could hit $300 a barrel should Western countries enact a ban on exports. Shell shares popped 3% on Tuesday.
Prices for the 10-year Treasury plummeted, raising yields to 1.84% from Monday's 1.78%. Treasury prices and yields move in opposite directions.
Oil prices shot up $9.13 to $128.53 U.S. a barrel.
Gold prices brightened $57.70 to $2,053.60 U.S. an ounce.
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