Strength in the energy sector helped Canada’s main stock index finish higher as U.S. and Israeli attacks on Iran raised worries about crude oil supplies and pushed prices higher.
“Everything’s being driven by what’s going on, anything to do with the war with respect to Iran,” said Allan Small, senior investment adviser at iA Private Wealth.
He said he is not surprised to see more calmness in the market than many would have expected.
The April crude oil contract was up US$4.21 at US$71.23 per barrel.
“I think this just goes to show you how the balance of production of energy is in the world today. Obviously, the United States being the largest producer of oil in the world, definitely calms the waters a lot more,” Small said.
Elsewhere in the Canadian market, shares of Saskatoon-based Cameco gained 10.5%. Prime Minister Mark Carney inked a deal with Indian Prime Minister Narendra Modi, where Cameco is to supply just under 9.9 million kilograms of uranium to India over nine years.
“Any deal that the Prime Minister can make that allows Canada to export to other parts of the world other than the United States is a win for our country,” Small said.
The S&P/TSX composite index was up 201.28 points at 34,541.27.
In New York, the Dow Jones industrial average was down 73.14 points at 48,904.78. The S&P 500 index was up 2.74 points at 6,881.62, while the Nasdaq composite was up 80.65 points at 22,748.86.
The S&P 500 fell as much as 1.2% at the start of trading, and cruise lines and airlines led the way lower. But U.S. stocks quickly erased those losses, in part because past military conflicts haven’t usually created sustained drops for the market, and the index finished the day with a gain of less than 0.1%.
Helping the U.S. stock market to bounce back from its early losses were oil companies, which benefited from the rising price of crude. Exxon Mobil climbed 1.1%, and Marathon Petroleum rose 5.9%.
Companies that make equipment for the military also strengthened. Northrop Grumman climbed 5.9%, and RTX rallied 4.7%.
Palantir Technologies, whose software helps global defence agencies and other customers, jumped 5.8% for one of the biggest gains in the S&P 500.
Big Tech stocks also helped support the market. Nvidia rose 2.9% and was the strongest single force pushing the S&P 500 higher.
Stocks of airlines were some of Monday’s sharpest losers. Not only do higher oil prices threaten their already big fuel bills, the fighting in the Middle East also closed airports and left travellers stranded.
Air Canada shares were down 6.7%, while American Airlines lost 4.2%. United Airlines fell 2.9% and Delta Air Lines sank 2.2%.
The Canadian dollar traded for 73.06 cents US compared with 73.30 cents US on Friday.
The April gold contract was up US$63.70 at US$5,311.60 an ounce.
— With files from The Associated Press