Canada Stocks Rise a 3rd Day as Tensions Ease in Ukraine, IraqEric Lam
Canadian stocks rose a third day, extending a two-week high, as global equities on signs that tension from Ukraine to Iraq had eased.
Royal Bank of Canada rose 0.7 percent before the lender reports earnings later this week. Air Canada jumped 5.9 percent as crude oil fell. Valeant Pharmaceuticals International Inc. lost 2.2 percent after extending its hostile bid for Allergan Inc.
The Standard & Poor’s/TSX Composite Index rose 34.23 points, or 0.2 percent, to 15,338.47 at 4 p.m. in Toronto. The benchmark equity gauge has climbed 13 percent this year, the second-best performer among the world’s developed markets behind Denmark.
The MSCI All-Country World Index added 0.7 percent for a two-week high. Ukraine and Russia made some progress in “difficult” talks in Berlin, according to German Foreign Minister Frank-Walter Steinmeier, while his Russian counterpart said the meeting is yet to produce a resolution. Kurdish forces retook control of Iraq’s largest dam, while Israel and Palestinian militants agreed to extend their truce, media on both sides of the conflict reported.
Seven of 10 industries in the S&P/TSX advanced on trading volume 31 percent below the 30-day average. Materials producers gained 0.6 percent as silver and copper advanced.
Royal Bank climbed 0.7 percent to C$80.41 and Canadian Imperial Bank of Commerce added 0.4 percent to C$101.76 as financial stocks increased 0.4 percent as a group. Royal Bank, the second-largest lender by assets in Canada, is scheduled to report third-quarter earnings Aug. 22.
Air Canada jumped 5.9 percent to C$8.48, snapping a five-day losing streak. U.S. crude oil sank 1 percent to $96.41 a barrel as tension in Iraq eased, while Brent crude dropped to a 14-month low.
Valeant Pharmaceuticals International dropped 2.2 percent to C$119.59 after extending its offer to purchase Allergan until the end of the year. The conditions of the offer remain unchanged.