Metals and utility stocks helped push Canada’s largest stock market to a moderate gain Wednesday, as U.S. stock indexes were barely changed following huge losses a day earlier.
The Toronto Stock Exchange’s S&P/TSX composite index climbed 35.33 points to 15,348.46.
Earlier in the session, the commodity-heavy index had wiped out all of its gains made so far this year, after closing out 2016 at 15,287.59. But by mid-day it had moved back into positive territory again.
In corporate news, Enbridge Inc. announced that it was cutting about 1,000 jobs or 6% of its workforce following the takeover of Houston-based Spectra Energy. Shares in Enbridge gained 1.8%, or 98¢, to $55.10.
Meanwhile, Sears Holdings in the U.S. said in a regulatory filing there is “substantial doubt” it will be able to remain in business. Sears Canada, which operates separately from its U.S. parent, saw its shares drop 4%, or 7¢, to $1.66 on the TSX.
In economic news, Ottawa released its latest federal budget, which detailed new initiatives to increase employment insurance premiums and go after drinkers, smokers and tax cheats. The plan also outlined how it aims to grow the high tech sector and lower financial barriers for working mothers.
South of the border, the trading mood was tepid a day after the Dow Jones industrial average suffered the biggest one-day loss since mid-October.
The Dow Jones was down 6.71 points to 20,661.30, after dropping 237.85 points on Tuesday, while the S&P 500 index added 4.43 points to 2,348.45 and the Nasdaq composite index was up 27.81 points to 5,821.64.
“Just given the magnitude and the moves we saw yesterday, investors are still just feeling a bit kind of rattled and risk averse,” said Ian Scott, an equity analyst at Manulife Asset Management.
Investors are getting nervous about whether U.S. President Donald Trump’s pro-market agenda will actually come into force.
The Republican-backed American Health Care Act appears to be in trouble ahead of a House of Representatives vote on Thursday. If the Obamacare replacement bill does not get voted through, it could throw into question whether there’s hope for Trump’s other proposals for business-friendly policies like tax cuts, looser regulations and infrastructure spending.
“Now you’re facing the political reality that Congress isn’t always the easiest to get things through,” Scott said.
In currencies, the Canadian dollar was trading at US75.04¢, up 0.18 of a U.S. cent, as the May crude contract lost US20¢ at US$48.04 per barrel.
The loss in oil was not as large as expected following a negative report from the U.S. government that said fuel stockpiles grew more than expected last week.
In other commodities, April natural gas contracts were down US8¢ at US$3.01 per mmBTU, May copper contracts were up a penny to US$2.63 a pound and the April gold contract rose US$3.20 at US$1,249.70 an ounce.