Energy, Healthcare Stocks Lift TSX

(RTTNews) - The Canadian stock market ended on a strong note on Tuesday, as investors shrugged off trade war concerns and picked up stocks, tracking higher crude oil prices and encouraging manufacturing sales report.

The mood was bullish in the market as the rates of tariffs the U.S. will impose on Chinese goods and retaliatory tariffs China will impose on U.S. goods are much less than earlier feared.

Meanwhile, on the U.S.-Canada trade front, Canada's Foreign Minister Chrystia Freeland is reported to have said that she would return to Washington this week for fresh talks on the North American Free Trade Agreement as time is running very short to meet a U.S. demand for a deal by October 1.

On the economic front, Statistics Canada's report showed manufacturing sales to have increased for the third consecutive month in July, rising 0.9% to $58.6 billion, due largely to higher sales in the transportation equipment and chemical industries.

Tthe benchmark S&P/TSX Composite Index ended up 113.73 points, or 0.71%, at 16,196.04, after scaling a low of 16,091.45 and a high of 16,198.67 in the session. On Monday, the Index ended up 68.82 points, or 0.43%, at 16,082.31.

Energy, healthcare, information technology and consumer staples stocks were the prominent gainers. A few stocks from materials, financial sections too closed on a firm note.

The Capped Energy Index moved up 2.58%. Suncor Energy Inc. (SU.TO) gained 3.15%, Canadian Natural Resources (CNQ.TO) advanced by 3.25%, Encana Corporation (ECA.TO) surged up 4.5%, Cenovus Energy Inc. (CVE.TO) added 2.1%, Imperial Oil (IMO.TO) ended 1.1% up, Husky Energy Inc. (HSE.TO) gained 1.85%, Vermilion Energy Inc. (VET.TO) ended nearly 2% up and PrairieSky Royalty (PSK.TO) advanced by 1.65%.

The Capped Healthcare Index climbed up 6.12%. Canopy Growth Corporation (WEED.TO) jumped 6.5%, Aurora Cannabis Inc. (ACB.TO) jumped nearly 10.5%, Bausch Health Companies Inc. (BHC.TO) gained 5.25%, Aphria Inc. (APH.TO) surged up 6.6% and Extendicare Inc. (EXE.TO) added 1.3%.

The Capped Financial Index ended up 0.53%. Royal Bank of Canada (RY.TO), Toronto-Dominion Bank (TD.TO), Bank of Nova Scotia (BNS.TO) and Bank of Montreal (BMO.TO) gained 0.4% - 1%.

The Capped Consumer Staples Index gained 1.4%. Loblaw Companies (L.TO) added 2.1%, Metro Inc. (MRU.TO) climbed up 1.85% and Saputo Inc. (SAP.TO) ended 2.5% up. Maple Leaf Foods (MFI.TO), Cott Corporation (BCB.TO), Empire Company (EMP.A.TO), George Weston (WN.TO) and Alimentation Couche-Tard Inc. (ATD.B.TO) gained 0.6% - 1.2%.

The Capped Information Technology Index ended up 1.56%. CGI Group Inc. (GIB.A.TO), Constellation Software Inc. (CSU.TO), BlackBerry (BB.TO), Descartes Systems Group Inc. (DSG.TO), Kinaxis Inc. (KXS.TO) gained between 0.5% - 1.5%, while Shopify Inc. (SHOP.TO) gained about 5%.

In the materials space, Teck Resources (TECK.B.TO) gained nearly 3%, First Quantum Minerals (FM.TO) vaulted 5.7% and Wheaton Precious Metals Corp. (WPM.TO)

Despite U.S. President Donald Trump ordering the imposition of tariffs on US$200 billion worth of Chinese goods, as widely expected, Asian stocks ended mostly higher on Tuesday, recovering well after early weakness.

Meanwhile, investors awaited China's response to the new tariffs and Trump's threat that duties will be levied on about $267 billion of Chinese goods into the U.S.

European stocks too edged slightly higher, with investors mostly treading cautiously after the imposition of tariffs on Chinese goods by the U.S. and China's retaliatory move.

U.S. stocks moved mostly higher, as traders shrugged off concerns about the escalating trade war between the U.S. and China. Traders seemed to be expressing relief that the rates of tariffs the U.S. will impose on Chinese goods and retaliatory tariffs China will impose on U.S. goods are not as high as feared.

In economic news from Europe, Sweden's unemployment rate unexpectedly rose in August to its highest level in 10 months, preliminary data from Statistics Sweden showed Tuesday.

Data from ISTAT showed Italy's industrial orders dropped for a second straight month in July and at the fastest pace in six months, falling by a seasonally adjusted 2.3% from the previous month, when they fell 1.5%. In May, orders grew 3.3%.

In Turkey, retail sales rose in July led by strong demand for medical goods and cosmetics and sharp growth in sales via mail orders and internet, figures from Turkstat showed Tuesday. The retail sales volume at constant prices grew a calendar-adjusted 3.1% year-on-year in July.

In the currency market, the Canadian dollar climbed against its most major rivals in the European session on Tuesday. The loonie bounced off to 1.3013 against the greenback, from a 6-day low of 1.3065 touched earlier in the session.

In commodities, Crude oil futures for October delivery ended up $0.94, or 1.4%, at $69.85 a barrel.

Natural gas futures for October were up $0.112, or 3.98%, at $2.926 per million btu.

Gold futures for December settled at $1,202.90 an ounce, down $2.90, or 0.2%, for the session.

Silver futures for December ended down $0.038, at $14.185 an ounce. Copper futures for December ended up $0.0795, at $2.7305 per pound.