North American markets were slightly higher in trading Wednesday as investors closely monitored comments about NAFTA negotiations.
“It’s a wait-and-see as the negotiations on NAFTA are taking centre stage and all attention is on any signs and indication how these negotiations are going,” said Kathryn Del Greco, vice president and investment adviser at TD Wealth.
Concerns about Canada’s ability to reach a deal with the Americans prompted the loonie to fall in early trading until Foreign Affairs Minister Chrystia Freeland issued some reassuring comments, said Del Greco.
“So as a result of that press release we did see the Canadian dollar rally.”
The Canadian dollar still traded down on the day to average US77.33¢, compared with an average of US77.42¢ on Tuesday.
Oil hit a one-month high as energy stocks helped lift Canada’s main stock index.
The S&P/TSX composite index closed up 34.75 points or 0.2% at 16,390.29, after hitting a high of 16,432.89 on 180.1 million shares traded.
The October crude contract closed up US98¢ at US$69.51 per barrel, the highest level since July 30.
The healthcare sector led the way again Wednesday, gaining 4.5%, as cannabis stocks rose.
Del Greco said the stocks rallied after Nanaimo-based Tilray Inc.reported that revenues rose 95% to US$9.7 million in its first quarter as a public company.
“The more and more we get these issuers reporting on earnings, and the investment world gets comfortable with these businesses and how they operate, they start to move a little bit more from the outside fringes a little bit more into the mainstream discussions around is this a viable industry to be considering,” she said in an interview.
In New York, the Dow Jones industrial average closed up 60.55 points at 26,124.57. The S&P 500 index hit an intraday high and ended up 16.52 points at 2,914.04, while the Nasdaq composite also hit a new high, rising 79.65 points to 8,109.69 in closing trading.
The Nasdaq surpassed 8,111 for the first time as technology stocks like Amazon and Apple rose on market confidence that they can meet their growth projections, Del Greco said.
“Money starts to feel quite safe in these types of businesses with very strong, what seems to be, predictable growth patterns,” Del Greco. “Certainly with a company like Apple people are very comfortable with how mature that business has become.”
After several months of nervousness, markets rose after Monday’s announcement of a preliminary trade accord between the U.S. and Mexico.
Del Greco said there’s lots of speculation that NAFTA negotiations could signal a softening American tone that will be constructive for other trading relations, including China.
The October natural gas contract closed up US1.8¢ at US$2.86 per mmBTU.
The December gold contract closed down US$2.90 at US$1,211.50 an ounce and the December copper contract ended down US2.2¢ at US$2.74 a pound.