Materials lead as concern over oil deal weighs
The energy sector started the session strong Tuesday but as an OPEC members meeting progressed through its second day there was concern that a deal may fail.
The current meeting is informal and nothing will be certain until Nov. 30 when the formalities take place. But having given positive comments earlier in the day, Iran and Iraq are at the centre of the doubts.
With oil prices down, the energy sector slipped on the main TSX index and was one of four sectors to close lower; healthcare was the largest drag. Meanwhile, the gains for materials was aided by metals prices.
Wall Street closed higher along with most major European and Asian indexes.
The S&P/TSX Composite Index closed 60.51 (0.40 per cent)
The Dow Jones closed up 67.18 (0.35 per cent)
Oil is trending mixed (Brent up at $49.00, WTI down at $47.87 at 4.15pm)
Gold is trending higher (1212.30 at 4.15pm)
The loonie is valued at U$0.7437
Motor trade boosts retail sales
Retail sales increased 0.6 per cent in September to reach $44.4 billion, the first significant rise for five months.
Statistics Canada said Tuesday that motor vehicle and parts dealers advanced the most in dollar terms with a 2.4 per cent rise; new car dealers saw a 2.8 per cent rise. Gasoline stations saw a 0.9 per cent rise.
There were lower sales at food and beverage stores (down 0.8 per cent), health and personal care stores (down 0.6 per cent) and miscellaneous stores (down 0.3 per cent).
Better pricing will lead to higher Canadian oil output in 2017
A 31 per cent rise in the number of oil wells drilled in Canada is forecast by the Canadian Association of Oilwell Drilling Contractors.
In its outlook, the trade body said that Saskatchewan is expected to lead activity but president Mark Scholz said that despite recovery the industry is “still in a depressed and desperate economic environment.”
He said that with the situation so dire in 2016, next year could only be better but he called on policymakers to ensure that the Canadian oil industry can be competitive in the global oil market.