Canada's main stock index rebounded on Monday, with mining shares leading the gains, as investors looked ahead to crucial economic reports and corporate earnings throughout this week.
The TSX galloped 323.61 points to move into noon hour Monday at 30,432.09.
The Canadian dollar backpedaled 0.006 cents to 71.28 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.
Among individual movers, Dye & Durham tumbled $1.16, or 17.5%, to $5.46, after Plantro, its second-largest investor, withdrew its acquisition proposal for the legal software firm.
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 vaulted 22.15 points, or 2.3%, to 987.73.
All but three of the 12 TSX subgroups were in the green, led by gold, shinier 2.7%, materials, up 2.4%, and health-care, haler by 2.1%.
The three laggards were telecoms, down 0.8%, consumer staples stepping back 0.7%, and consumer discretionary, off 0.1%.
ON WALLSTREET
Stocks moved higher on Monday, thanks to a rise in Apple shares, as investors looked ahead to a possible end to the ongoing U.S. government shutdown as well as a slew of big-name earnings reports and inflation data expected in the coming days.
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.
Apple led the market higher, rising 4% after receiving an upgrade to buy from hold at Loop Capital. The firm pointed to improving demand trends for the company’s iPhones, saying that “we are NOW at the front end of AAPL’s long-anticipated adoption cy
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.
Investors also moved past concerns of credit risks that had caused a broader rout on Thursday. The market panicked after Zions and Western Alliance disclosed issues tied to bad loans, leading shares of several financial
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.
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 62 cents to $56.92 U.S. a barrel.
Gold prices dumped $150.70 to $4,364.00 U.S. an ounce.
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