TORONTO — Canada’s main stock index closed up nearly 100 points Friday, helped by strength in energy and financial stocks, while U.S. markets were mixed.
Markets diverged as investors pulled away from risk-on bets like tech stocks and favoured dividend and low-volatility stocks, said Ian Chong, portfolio manager at First Avenue Investment Counsel.
“That risk-off is largely driven by geopolitical risks flaring up again.”
Israel’s strike on Iran overnight raised tensions, which eased Friday but still left markets on edge, said Chong.
“Iran did say that they would not retaliate, which kind of de-escalated tensions, but here we are Friday afternoon heading into the weekend, and I don’t think anyone really wants to take that risk.”
The flare-up helped send oil up to around US$90 per barrel in early morning trading. It fell back down as concerns eased, with the benchmark U.S. May crude contract settling up 41 cents at US$83.14 per barrel….
