Shopify’s Monster Rally Keeps Canada Stocks Afloat Amid Oil Drop

(Bloomberg) -- Canadian stocks eked out a gain on Monday as Shopify Inc. hit a record, while oil prices plunged below zero in an unprecedented crash.

The S&P/TSX Composite Index rose 0.2% on Monday, while U.S. stocks fell. Shopify gained for an eighth session, putting it in a tight race with one of Canada’s largest banks to become the second-most valuable company on the nation’s stock market.

The price on the futures contract for West Texas crude that is due to expire Tuesday fell into negative territory -- minus $37.63 a barrel. This means sellers were actually paying buyers to take the stuff off their hands. The reason: with the pandemic bringing the economy to a standstill, there is so much unused oil sloshing around that American energy companies have run out of room to store it.

However, energy stocks largely shook off the plunge in oil, while some investors are attempting to call a bottom. “The end to the oil bloodbath is in sight,” said Eric Nuttall, a portfolio manager at Ninepoint Partners in Toronto.

Meanwhile, supply cuts that were supposed to bolster the beleaguered lumber market are now creating an unintended effect: the wood chips required to make sought-after toilet paper and wipes during the coronavirus pandemic are becoming more scarce.

The Canadian dollar weakened about 0.9% to C$1.4126 per U.S. dollar and the 10-year government bond yield fell about 2.3 basis points to 0.631%.

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