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TSX Shrugs Off Mild Setback, Settles At 5-month High

The Canadian stock market ended on a positive note on Tuesday, led by gains in energy and materials shares, even as the mood remained a bit cautious due to global growth worries.

The benchmark S&P/TSX Composite Index, which dropped to 16,099.62 after a positive start, ended up 30.42 points, or 0.19%, at 16,136.66, after rising to 16,148.95, a five-month high.

On Monday, the index ended up 110.03 points, or 0.69%, at 16,106.24.

Slightly higher oil prices and firm gold futures triggered some strong buying in energy and materials sections.

Encana Corporation (ECA.TO) gained 3.6%, ARC Resources (ARX.TO) ended 1.7% up, Tourmaline Oil Corp. (TOU.TO) surged up 2.5%, Parex Resources (PXT.TO) gained 1.7% and Cenovus Energy (CVE.TO) advanced 1.2%.

The Capped Materials Index ended 1.26% up. Franco-Nevada Corporation (FNV.TO) gained 1.05%, Teck Resources (TECK.B.TO) climbed 2%, Agnico Eagle Mines (AEM.TO) advanced 2.2%, Goldcorp Inc. (G.TO) ended stronger by 3.5%, First Quantum Minerals (FM.TO) gained 2.25%, Kirkland Lake Gold (KL.TO) rose nearly 2% and CCL Industries (CCL.B.TO) finished 1.1% up.

Kinross Gold Corporation (K.TO) moved up 3.1% and Yamana Gold Inc. (YRI.TO) gained nearly 3%, while Eldorado Gold (ELD.TO) added more than 6%.

Among pot stocks, Cannabis Growth Corporation (WEED.TO) gained 1.5% and Cronos Group Inc. (CRON.TO) jumped nearly 2%, while Green Organic Dutchman Holdings (TGOD.TO) declined 2.2% and Aphria Inc. (APHA.TO) ended 1.7% down. Hexo Corp. (HEXO.TO) declined marginally.

In the banking space, Toronto-Dominion Bank (TD.TO), Bank of Nova Scotia (BNS.TO) and National Bank of Canada (NA.TO) edged higher. Canadian Imperial Bank of Commerce (CM.TO) edged down marginally, Bank of Montreal (BMO.TO) ended 0.88% down and Royal Bank of Canada (RY.TO) settled modestly lower.

U.S. stocks ended mixed with the major averages moving in opposite directions during trading on Tuesday. While the Dow pulled back, the broader Nasdaq and S&P 500 extended yesterday's strong upward move.

The loss posted by the Dow was largely due to a continued decline by Boeing (BA), with the aerospace giant tumbling by 6.2% after slumping by 5.3% on Monday.

The continued drop by Boeing came after the European Union, China, the U.K. and other countries grounded the company's 737 MAX jets following the second crash in less than 6 months.

Meanwhile, the broader markets benefited from the release of tame inflation data, which suggests the Federal Reserve will continue to refrain from raising interest rates in the near future.

European markets ended mixed after cautious trades with investors focusing on Brexit developments. Asian markets ended mostly higher amid hopes about U.S.-China trade negotiations and on gains on Wall Street on the previous session.

In commodities, West Texas Intermediate Crude oil futures for April ended up $0.08, or 0.1%, at $56.87 a barrel.

Gold futures for April ended up $7.00, or 0.5%, at $1,298.10 an ounce.

Silver futures for May ended up $0.139, at $15.413 an ounce, while Copper futures for May settled at $2.9285 per pound, gaining $0.0275 for the session.

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