By Sudeshna Ghoshal
Canada's main stock index edged higher on Tuesday, buoyed by rising oil prices, while investors awaited the minutes of the U.S. Federal Reserve's June meeting for signals on monetary policy.
The Toronto Stock Exchange's S&P/TSX Composite index TSX:TSX rose 0.25% to 35299.67 points by 10:00 am ET.
Oil prices rose as reports of attacks on vessels near the Strait of Hormuz revived fears of disruptions to shipping through the critical energy transit route.
Brent crude futures ICEEUR:BRN1! gained 1.88% to $73.33 a barrel; U.S. West Texas Intermediate crude NYMEX:CL1! rose 1.85% to $69.83 a barrel.
Canada's energy index TSX:TTEN rose 1.7%. Imperial Oil TSX:IMO, Strathcona Resources TSX:SCR and Suncor Energy TSX:SU were among the biggest gainers, adding between 2.3% and 2.4%.
"We are in for a more choppy phase, but earnings continue to provide strong support. The energy sector can provide some hedge against different scenarios," said Angelo Kourkafas, senior global investment strategist at Edward Jones Investments.
"The market reaction to the Samsung earnings highlights how high the bar is in terms of earnings expectations."
Gold slipped for a second consecutive session as a stronger U.S. dollar weighed, while investors awaited minutes from the Fed's June meeting, when it held interest rates unchanged. Spot gold (=XAU) and silver (=XAG) prices dipped 0.14% and 1.39%, respectively.
A softer-than-expected U.S. jobs report and signs of easing tensions in the Middle East have tempered expectations of several U.S. interest rate increases this year.
Traders are pricing in one 25-basis-point rate hike from the Fed by the end of this year, according to LSEG data.
Meanwhile, the Bank of Canada is seen keeping interest rates on hold this year, with the next policy decision due on July 15.