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(Reuters) – Canada’s main stock index inched higher on Tuesday on optimism around the earnings season, although a slide in crude prices kept gains in check.
At 10:22 a.m. ET (1522 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 44.04 points, or 0.21%, at 21,279.54.
“Stocks are holding steady as earnings season starts to pick up,” said Colin Cieszynski, chief market strategist at SIA Wealth Management, adding that investors are primarily looking out for quarterly numbers this week, particularly as major insurance companies are set to report.
The heavyweight financial sector was among the biggest gainers, up 0.8%.
Bank of Canada Governor Tiff Macklem is due to speak on Wednesday on the evolution of Canadian business, which could offer clues on the interest rate outlook.
Money markets expect the Canadian central bank to begin hiking rates at its next policy announcement on March 2 and to raise borrowing costs a total of six times this year. [BOCWATCH]
Limiting gains on the TSX, the energy sector dropped 3.2% as oil slipped to around $91 a barrel.[O/R]
“Markets have held up reasonably well considering crude oil is a bit off today,” Cieszynski said.
Meanwhile, Canada posted a surprise trade deficit of C$137 million ($107.86 million) in December, as imports jumped and exports fell from November, Statistics Canada said on Tuesday, while November’s surplus was revised down to C$2.47 billion from C$3.13 billion.
Analysts surveyed by Reuters had on average forecast a surplus of C$2.50 billion in December.
Among individual stocks, oil and gas producer Cenovus Energy (NYSE:CVE) Inc slumped 7% after it posted a wider quarterly loss, primarily due to non-cash impairment of C$1.9 billion ($1.50 billion) in the U.S. manufacturing segment.
News and data provider Thomson Reuters (NYSE:TRI) Corp fell 4.5% after it missed fourth-quarter earnings forecasts.
($1 = 1.2702 Canadian dollars)
