TSX climbs on commodity stocks boost; focus on bank earnings

FILE PHOTO: A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014. Canada’s main stock index was little changed on Monday as weakness in financial and energy shares offset gains in the materials sector. REUTERS/Mark Blinch (CANADA – Tags: BUSINESS)/File Photo

(Reuters) – Canada’s main stock index edged higher on Tuesday as gains for gold and crude prices lifted resource stocks, offsetting a drop in financials after Bank of Nova Scotia kicked off quarterly earnings reporting for the country’s biggest banks.

The Toronto Stock Exchange’s S&P/TSX composite index ended up 10.43 points, or 0.05%, at 19,985.35, steadying after it declined on Monday for a second straight day.

Meanwhile, Wall Street ended down as investors focused on data showing a slowing economy ahead of a U.S. Federal Reserve gathering later this week in Jackson Hole, Wyoming.

The Toronto market’s energy sector climbed 3% as oil prices rose after Saudi Arabia floated the idea of OPEC+ output cuts to support prices. U.S. crude oil futures settled 3.7% higher at $93.74 a barrel.

The materials sector, which includes precious and base metal miners and fertilizer companies, added 2.4% as gold and copper prices rose.

Together, energy and materials account for 29% of the TSX’s market capitalization.

Financials are also heavily weighted.

The sector fell 1%, with shares of Scotiabank ending 5.25% lower after the company reported third-quarter profit a touch below estimates as a sharp drop in income from its capital markets unit overshadowed strong loan growth in its international business.

Reporting by Fergal Smith in Toronto; Additional reporting by Aniruddha Ghosh in Bengaluru; Editing by Shailesh Kuber and Matthew Lewis

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