Commodity Strength Propels TSX Despite Tariff Concerns

(RTTNews) - Canada's equity benchmark S&P/TSX Composite Index moved up firmly Tuesday morning, lifted by strong gains in materials and energy sectors, even as stocks from other sectors turned in a mixed performance.

Reports about fresh diplomatic efforts to ease the Middle East conflict appeared to be aiding sentiment, while U.S. President Donald Trump's decision to impose an additional 50% tariff on a wide range of goods imported from Canada weighed a bit, limiting market's gains.

Trump signed three Proclamations pursuant to Section 338 of the Tariff Act of 1930 on Monday to impose additional tariffs, saying that the move was in retaliation for what he called "Canada's discriminatory treatment of American products" such as cars, dairy and alcohol.

The S&P/TSX Composite Index was up 213.32 points or 0.61% at 35,173.64 a little while ago.

WTI crude futures climbed up nearly 3% to $85.70 a barrel, triggering strong buying in the energy sector.

Firm precious metals prices fueled demand for materials stocks. Gold and silver futures moved up by about 1.5% and 4%, respectively to $4,073 an ounce and 59.300 an ounce. Copper prices jumped as well, rising nearly 3% to $6.5300 per pound.

The Materials Capped Index climbed more than 3.5%. Discovery Mining, Eldorado Gold, Hudbay Minerals, 5N Plus, Capstone Copper, Ivanhoe Mines, Trekor Metals, Americas Gold & Silver Corporation, Ero Copper, Aris Mining Corporation, G Mining Ventures, Avino Silver & Gold Mines and Novagold gained 5%-8.5%.

The Energy Capped Index moved up 1.7%. Vermilion Energy, Parex Resources, Enerflex, Whitecap Resources, Tamarack Valley Energy, Peyto Exploration, Canadian Natural Resources and Baytex Energy climbed 2%-3.1%.