TSX ends higher but retreats from China rally
By Claire Sibonney
TORONTO (Reuters) - The TSX closed slightly higher on Monday, but beat a profit-taking retreat from a sharp rally earlier in the day that was spurred by China's vow to allow its currency to trade flexibly.
Before giving back most of their gains by the end of the day, shares of base-metal miners shot up more than 3 percent as copper prices rose on hopes that China's move would increase its demand for industrial metals. China is already the world's largest consumer of industrial metals .
Teck Resources jumped 3.6 percent to C$36.67, while First Quantum Minerals soared 4.4 percent to C$64.59.
"The big news of the day today was China ... I think that makes investors a little more comfortable," said Aaron Fennell, senior markets strategist at futures brokerage Lind-Waldock.
"It will loosen up some of the imbalances that are present in the global economy, particularly between the United States and China ... countries like Canada and some European countries also have trade deficits with China."
Gold-mining stocks, however, fell 3 percent, as the price of precious metal eased from record highs as safe-haven demand eased.
Barrick Gold Corp lost 2.5 percent to C$45.86, while Goldcorp Inc also dropped 2.5 percent to C$45.35.
Crude oil prices pared gains after bouncing to a 6-1/2-week high, and natural gas prices slid, but energy shares settled 0.2 percent higher. Continued...