Oil is driving up markets

(Toronto and New York) North American stock markets closed higher yesterday, supported by gains in crude oil prices and a new confidence wind to global economic growth.

The S & P / TSX Toronto Stock Exchange climbed 32.23 points 12 845.63 points. The TSX has particularly benefited from the rise in crude oil prices, which took US $ 1.64 to US $ 33.39 a barrel on the Commodity Exchange in New York.

The Canadian dollar appreciated for its share of 0.30 cents to 72.93 cents US. Elsewhere on the commodities market, the price of copper jumped 4 cents to US $ 2.11 a pound, while the price of gold bullion dropped US $ 20.70 to US $ 1,210.10 l ‘ounce.

On Wall Street, the Dow Jones industrial average was up 228.67 points, or 1.40 percent, to 16 620.66 points, while the broader S & P 500 has seized 27.72 Points , or 1.45 percent, to 1,945.50 points. The Nasdaq composite index took 66.18 points or 1.47 percent to 4570.61 points.

“Oil prices rose today, really significantly, and this has not only pulled up the values ​​of energy but also the rest of the market,” summarized Alan Skrainka of Cornerstone Wealth Management.

After falling earlier this year to the lowest since 2003 and experienced an uncertain beginning of February, oil prices rebounded sharply Monday amid hopes of reduced US production and a production freeze several other major producers to stabilize prices.

“Oil is leading the market up or down … I’ve been doing this for 34 years and I have never seen such a correlation!” Acknowledged Mr. Skrainka.

The link between the stock market and the black gold is all the more notable that economic news is not animated in the US without significant statistical and without a lot of business results, and it is negative enough to International, with poor figures on European economic activity and a disappointing quarterly publication of the British banking giant HSBC.

“It was not so long ago, European markets have fallen on such news and resulted in global markets with them,” commented Mr. Skrainka. “But investors have ignored this news focusing on oil. This reflects concerns about lending to the energy sector. ”

As such, the Goldman Sachs investment bank announced that over one third of the financial commitments it has made in the oil and gas sector to benefit businesses considered as risky by credit rating agencies.

Caution remains in any case to put to many observers, some warn that a sustainable market recovery, after a bad start to the year, could push the Federal Reserve (Fed) to accelerate the pace of withdrawal of support to the economy. “Everything we worried about it two weeks ago, it did not disappear,” said Mace Blicksilver of Marblehead Asset Management, saying “prudent” and “pretty nervous” against the franc rebound committed by the indices from a ten days.

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