CANADA STOCKS-TSX rebounds as higher oil prices lift energy shares

Reuters
10/23
CANADA STOCKS-TSX rebounds as higher oil prices lift energy shares

TSX ends up 0.3% at 29,982.98

Energy adds 1.5% as oil settles 2.2% higher

Consumer staples gain 0.8%

Teck Resources shares fall 1.8% after earnings report

Updates at market close

By Fergal Smith

Oct 22 (Reuters) - Canada's main stock index clawed back some recent declines on Wednesday as higher oil prices boosted energy shares, but the move was limited as trade tensions rose.

The S&P/TSX composite index .GSPTSE ended up 94.16 points, or 0.3%, at 29,982.98. On Tuesday, the index posted its lowest closing level since October 10 as gold's sharpest single-day drop in five years pressured metal mining shares.

Wall Street lost ground on Wednesday as investors assessed mixed earnings and reports that the Trump administration is considering curbs on exports to China made with U.S. software.

"Comments on trade didn't help," said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth. "Everybody is waiting for this market to pull back."

The TSX has advanced 21.25% since the start of the year and notched a record closing high as recently as last Wednesday.

Energy .SPTTEN rose 1.5% as the price of oil CLc1 settled 2.2% higher at $58.50 a barrel on growing U.S. energy consumption.

Industrials .GSPTTIN also notched gains, adding 0.5%, and consumer staples .GSPTTCS ended 0.8% higher.

The operator of Canada's Trans Mountain pipeline and oil shippers are in talks to resolve a shipping cost dispute that has deterred usage of Canada's only east-west pipeline and hindered the government's plan to sell it.

The materials group, which includes metal mining shares, was up 0.1%. The price of gold XAU= fell 0.5%, adding to the previous day's decline.

Still, gold was up about 57% since the start of the year as mounting economic and geopolitical uncertainty alongside expectations of further interest rate cuts by the U.S. Federal Reserve supported demand for the precious metal.

Gold rose "too high, too fast," Small said.

Teck Resources TECKb.TO beat third-quarter profit estimates, lifted by higher copper and zinc prices. Still, its shares ended 1.8% lower.

(Reporting by Fergal Smith in Toronto and Ragini Mathur in Bengaluru; Editing by Vijay Kishore and Marguerita Choy)

((fergal.smith@thomsonreuters.com; +1 647 480 7446))

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