TSX flat to end a positive week as U.S. infrastructure deal drives crude prices up
TORONTO — Canada’s main stock index partially recovered from last week’s heavy losses as a bipartisan infrastructure deal in the United States drove crude oil prices above US$74 a barrel.
The US$1.2-trillion package over eight years includes a focus on roads and U.S. transportation infrastructure that bodes well to a continuation of the reopening theme as the number of vaccinations continue to increase, says Macan Nia, senior investment strategist at Manulife Investment Management.
“Just positive news from vaccination front and then also the infrastructure agreement out of the U.S. that is having upward pressure on the oil complex,” he said in an interview.
The August crude contract was up 75 cents at US$74.05 per barrel and the August natural gas contract was up 8.3 cents at US$3.52 per mmBTU.
That helped the energy sector on typically quiet summer day with shares of Arc Resources Ltd. climbing five per cent.