Canada’s main stock index rose on Monday after energy stocks climbed on firm crude oil prices, and were supported by a jump in healthcare and financial stocks.
At 10:01 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 219.72 points, or 1.11%, at 19,993.06.
The energy sector climbed 2.1%, tracking rising oil prices as Iranian nuclear talks appeared to hit obstacles and an embargo on Russian oil shipments loomed, with tight supply struggling to meet still robust demand.
The financials sector and the industrials sector gained 1.2% each.
“This week is all about U.S. inflation reading and that is going to set the tone for the next interest rate decision out of the U.S. and then the Canadian markets will move based on U.S. economic data,” said Allan Small, senior investment advisor at Allan Small Financial Group.
Investors are waiting to see if U.S. inflation data offers any signs that price pressures may be easing.
Toronto stocks are still hovering between the April highs and July lows, after last week’s strong gains.
Meanwhile, Canada’s statistics agency said the ratio of Canadian household debt-to-income widened to a record 181.7% in the second quarter from an downwardly revised 179.3% in the first quarter.
On the deals front, Tamarack Valley Energy Ltd fell 2.0% on saying it will buy oil producer Deltastream Energy Corp in a deal valued at C$1.425 billion ($1.10 billion), making it the largest producer in Alberta’s Clearwater.
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