TORONTO (Reuters) - Canada’s main stock index rose for the fifth straight day on Monday, posting a fresh all-time peak as financials and industrials climbed, while lower oil and gold prices weighed on resource shares.
U.S. equity indexes also reached record highs as investors bet tax cuts promised by President Donald Trump would boost the economy.
Trump said on Monday the United States will be “tweaking” its trade relationship with Canada, stopping short of calling for a major realignment in a development likely to please visiting Canadian Prime Minister Justin Trudeau.
“I think it (the visit) went very well for Canada,” said John Kinsey, portfolio manager at Caldwell Securities.
“We need the U.S. and to a lesser extent they do need us.”
Canada sends 75 percent of its exports to the United States and investors worry that a proposed renegotiation of the North American Free Trade Agreement would hurt Canada’s economy.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended up 27.46 points, or 0.17 percent, at 15,756.58, a new record close.
The index has rallied more than 36 percent from a three-year trough in January last year.
Some of the most influential movers on the index were banks and insurance companies as bond yields climbed ahead of testimony this week by U.S. Federal Reserve Chair Janet Yellen.
Higher bond yields reduce the value of insurance companies’ liabilities and increase net interest margins of banks.
Bank of Montreal BMO.TO rose 0.6 percent to C$100.73 and Manulife Financial Corp MFC.TO climbed 0.7 percent to C$24.59, while the overall financials group gained 0.4 percent.
Five of the index’s 10 main groups ended higher, with industrials rising 0.7 percent as railroad stocks gained ground.
The materials group, which includes precious and base metals miners and fertilizer companies, fell 0.4 percent.
Teck Resources Ltd TECKb.TO rose 2.2 percent to C$33.32 as copper reached its highest since May 2015 on supply curbs.
But gold stocks were weighed by lower gold prices, with Goldcorp Inc G.TO falling 1.5 percent to C$21.91.
Gold futures GCc1 fell 0.7 percent to $1,225.9 an ounce and copper prices CMCU3 advanced 0.3 percent to $6,105.85 a tonne.
The energy group declined 0.4 percent as oil fell in response to growing evidence that U.S. production is rising.
Canadian Natural Resources Ltd CNQ.TO retreated 0.7 percent to C$39.20, while U.S. crude CLc1 prices settled 93 cents lower at $52.93 a barrel.
Reporting by Fergal Smith; Editing by Andrea Ricci and Chris Reese