Canada’s main stock index extended its rally for a third consecutive day on Friday after beginning the week at its lowest level this year, as Wall Street idled on the latest “Trumpcare” news.
The Toronto Stock Exchange’s S&P/TSX composite index inched forward 9.06 points to 15,442.67, with consumer discretionary and utilities sectors leading advancers.
In New York, stock indices were mixed, with little movement in either direction.
The Dow Jones industrial average shed 59.86 points to 20,596.72, the S&P 500 index fell 1.98 points to 2,343.98, and the Nasdaq composite index gained 11.05 points to 5,828.74.
The markets continued to tread water despite “some pretty meaningful news,” said Stephen Lingard, senior vice president and portfolio manager at Franklin Templeton Solutions.
U.S. President Donald Trump announced the presidential permit to build the Keystone XL pipeline has been granted. On Twitter, Trump called it “a great day for American jobs.”
The news came more than eight years after the initial application and after his predecessor Barack Obama rejected the project.
The approval should have been positive, said Lingard, but the looming vote on Trump’s proposed American Health Care Act overpowered it. However, Republican leaders pulled the measure off the House floor shortly before markets closed.
Markets took a “wait and see approach” ahead of the vote, initially scheduled for Friday afternoon, said Lingard.
With the so-called “Trumpcare” bill now cancelled, questions remain as to whether the American leader can successfully pass other promised pro-business policy changes.
“If we can’t get this one passed, you know, what does that mean for tax reform?” asked Lingard.
In currencies, the Canadian dollar fell 0.16 of a U.S. cent to US74.74¢.
While it’s not a material change, the dip likely occurred in part due to a Statistics Canada report released Friday showing the country’s annual pace of inflation ticked lower last month, said Lingard.
In February, the consumer price index rose 2.0% on a year-over-year basis compared with a 2.1% increase in January.
The report cools the need for the Bank of Canada to raise interest rates any time soon, Lingard said, which potentially results in a little bit of weakness for the loonie.
In commodities, the May crude contract advanced US27¢ to US$47.97 per barrel and the April gold contract gained US$1.30 to US$1,248.50.
April natural gas contracts rose US2.5¢ to about US$3.08 per mmBTU and May copper contracts shed about US1.4¢ to US$2.63.
With files from the Associated Press