Canada's main stock index opened higher on Monday, with materials sector leading the rise, as investors looked ahead to crucial economic reports and corporate earnings slated throughout this week.
The TSX regained 283.58 points to begin Monday and the week at 30,392.06.
The Canadian dollar backpedaled 0.12 cents to 71.23 cents U.S.
Metal prices provided a tailwind for Canadian futures on the day, with gold inching higher after a record rally, as expectations of more U.S. rate cuts and safe-haven demand from the ongoing government shutdown supported sentiment.
In the economic docket, Statistics Canada said its Industrial Product Price Index increased 0.8% month over month in September and gained 5.5% year over year. Meanwhile, the Raw Materials Price Index increased 1.7% month over month and rose 8.4% year over year.
ON BAYSTREET
The TSX Venture Exchange recovered 14.77 points, or 1.5%, to 980.75.
All but three of the 12 TSX subgroups were in the green, led by gold, shinier 2.2%, materials, up 2%, and health-care, haler 1.8%.
The three laggards were telecoms, down 0.5%, consumer staples stepping back 0.3%, and consumer discretionary, off 0.03%.
ON WALLSTREET
Stocks moved higher on Monday as investors looked ahead to a slew of big-name earnings reports and inflation data expected in the coming days, as well as the prospect that the ongoing U.S. government shutdown would end.
The 30-stock index gained 321.32 points to begin Monday at 46,511.93.
The S&P 500 advanced 58.91 points to 6,722.92.
The tech-heavy NASDAQ jumped 275.50 points to 22,955.48.
The shutdown “is likely to end sometime this week,” National Economic Council director Kevin Hassett the media, which gave a boost to stocks. Hassett added that he believes “moderate” Democrats would come together this week to strike a deal.
Hassett also said that the White House was prepared to take stronger measures to force an end to the stoppage, which has now entered Day 20, if there’s no deal this week.
Stocks are coming off a volatile trading week, ultimately closing higher despite flaring tensions between the U.S. and China, a selloff sparked by regional bank losses and declines in a few high-flying artificial intelligence names.
However, a strong start to the third-quarter earnings season appears to be lifting sentiment, alongside investors’ anticipation of another quarter percentage point rate cut at the Federal Reserve’s late October meeting.
Following the first week of the reporting season, 76% of the 58 S&P 500 companies that have posted results so far have exceeded expectations, far surpassing the first-week average of 68% and slightly higher than last quarter’s 73% figure, according to Bank of America.
This week, several large companies are expected to report quarterly results. Netflix, Coca-Cola, Tesla and Intel are among the names on deck. Investors hope that earnings will continue to come in strong, possibly overshadowing any challenges in the macroeconomic landscape.
Apple was among Monday’s winners, rising 2% after receiving an upgrade to buy from hold at Loop Capital Markets, which pointed to improving demand trends for the company’s iPhones.
Prices for the 10-year Treasury nicked up, lowering yields to 3.99% from Friday’s 4%. Treasury prices and yields move in opposite directions.
Oil prices faded 54 cents to $57.00 U.S. a barrel.
Gold prices dumped $133.70 to $4,347.00 U.S. an ounce.
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