Oil lifts TSX, Wall St. awaits Georgia
Canadian stocks enjoyed a second straight day of gain to start 2021 as OPEC+ (except Russia) agreed to limited February oil output levels. The TSX rose 0.92% Tuesday, closing on session highs. Energy soared 7.49% as names like Torc Oil & Gas, Crescent Point and Vermilion surged nearly 10%. Cenovus, the most-traded stock, popped 6%.
Telcos and industrials also flexed their muscles. Air Canada some of the ground it lost Monday by rallying 4%. In contrast, gold names which soared on Monday, slipped; New Gold closed -4%. The price of WCS leapt nearly 7% to approach $35/barrell while WTI jumped 5% to $50.
Another story was told on Wall Street as investors watch the Georgia run-offs taking place Tuesday that will decide the remaining contested Senate seats and decide the ovall balance of power between the Democrats and Republicans. A “blue sweep” could see larger fiscal stimulus, but also higher taxes. Markets continued to fret over the high number of Covid cases and the slow vaccination rate, though some expect the latter to pick up this quarter. American indices dipped into the red early on, but gradually climbed through the choppy session to finish in the green. The Dow gained 0.55%, the S&P 0.71% and the Nasdaq climbed 0.95%. Again, energy led, rising 4.53%. Boeing gained 4.4% while Goldman Sachs advanced 2.24%. Bitcoin marched 8% higher to $34,000.