- WTI touches Nov. 11 high after Turkey downs Russian warplane
- Bombardier drops as planemaker cuts 2016 profit forecast
Canadian stocks rose for the first time in three days, as commodities producers jumped with the price of oil after Turkey’s downing of a Russian warplane near the Syrian border sparked concern of supply interruptions.
Equities also got a boost after a Kremlin spokesman said Russia’s response won’t include the military, fueling speculation any fallout from the incident will be contained. Resource producers advanced at least 1.4 percent in Canada to lead equities higher.
Turkey’s action near the border with northwestern Syria marked the first direct clash between the foreign powers embroiled in the civil war and sparked selling in global equities in morning trading. Canada’s resource-rich equity market rose as crude rallied on speculation supplies from the Middle East may be disrupted.
Bombardier Inc. fell 4.8 percent after predicting a decline in profit next year. Royal Bank of Canada slipped 0.3 percent to lead lenders lower. Crew Energy Inc. and Ecnana Corp. jumped at least 6.3 percent.
The Standard & Poor’s/TSX Composite Index rose 25.45 points, or 0.2 percent, to 13,407.83 at 4 p.m. in Toronto. The index has pared declines for the year to 8.4 percent, trailed only by Singapore and Greece among developed markets.
Russian President Putin accused Turkey of being an accomplice of terrorism and warned of “very serious consequences” for their relations. The escalating tension in the region comes with Brussels on the highest-level terror alert and after the U.S. State Department issued a global alert for Americans.
Raw-materials and energy producers, which account for almost 30 percent of Canada’s benchmark stock index, were two of the three industries among 10 in the S&P/TSX to advance. Consumer staples stocks added 0.3 percent after Alimentation Couche-Tard Inc. posted second-quarter earnings ahead of estimates and boosted its dividend.
Encana jumped 6.5 percent and Cenovus Energy Inc. added 1.7 percent as energy producers rallied 1.5 percent as a group. West Texas Intermediate touched a high of $43.46 with volume of all futures traded 18 percent higher than the 100-day average.
Energy and raw-materials producers, along with health-care stocks, have fallen at least 20 percent this year to lead declines in the S&P/TSX. A combination of slowing economic growth in China and a rally in the U.S. dollar due to impending interest-rate increases from the Federal Reserve as soon as December have crimped commodities prices.
Bombardier fell for a third day of losses. The struggling planemaker predicted a drop in 2016 earnings at its annual investor day in New York amid lower output of its biggest current business jets and costs from the oft-delayed C Series airliner.