Equity markets in Canada’s largest market rebounded on Monday from a steep selloff last week, after global markets rose partly due to relief over an unchanged credit rating on Italy.
The S&P/TSX Composite Index came down from their highs of the morning, but remained positive 43.5 points by Monday’s noon hour to 14,931.76
The TSX fell 3.7% in the previous week, its worst week since February, hurt by concerns over the impact of tariffs on corporate profits, slowing global economic growth and as the Bank of Canada raised its benchmark interest rates.
The Canadian dollar shed 0.1 cents to 76.25 cents U.S.
The largest percentage gainer on the TSX was Bombardier B, which rose three cents, or almost 1%, to $3.12, followed by Magna International, which was up $1.86, or 2.9%, to $65.16.
Yamana Gold fell two cents to $3.03, while New Gold recovered from an initial dip to climb seven cents, or 6.7%, to $1.11.
ON BAYSTREET
The TSX Venture Exchange doffed 3.84 points to 639.74
All but three of the 12 subgroups were higher, as gold sprang up 1.7%, while consumer discretionary stocks heightened 1.2%, and materials gained 1%.
The three laggards were health-care, diving 5%, energy, down 0.8%, and utilities, off 0.2%.
ON WALLSTREET
Stocks traded higher on Monday as investors try to regain their footing amid steep losses this month. Sentiment was also lifted by a big acquisition in the tech space as well as strong gains by bank shares.
The Dow Jones Industrials restocked 111.47 points, though off its highs of the morning to reach noon at 24,799.78, as Goldman Sachs and Home Depot outperformed.
The S&P 500 recovered 20.99 points to 2,679.68, led by strong gains in tech, financials and materials.
The NASDAQ added 19.29 points to 7,186.50, boosted by gains in Facebook and Apple, but weighed down by a 3% drop in Amazon and a 2.5% decline in Netflix.
J.P Morgan Chase and Goldman Sachs climbed more than 2% each, while Citigroup gained 1.9%.
Monday's moves come after a 3% drop on the Dow last week, which was capped off by a decline of nearly 300 points on Friday. The S&P 500 dropped 3.9%, and NASDAQ declined 3.8%.
Worries over a possible slowdown in corporate earnings growth, as well as in the global economy, have sent the major indexes down sharply this month. The Dow has given back 6.7%, and S&P 500 is down 8.8% for October. The NASDAQ, meanwhile, has lost 10.9% through Friday's close.
U.S. stocks also got a boost after IBM agreed to buy Red Hat, an open-source software distributor, for around $34 billion. Red Hat shares surged nearly 50% on the deal, while IBM's stock fell 2.5%.
Prices for the benchmark for the 10-year U.S. Treasury slumped, raising yields to 3.10% from Friday’s 3.08%. Treasury prices and yields move in opposite directions.
Oil prices sank 26 cents at $67.33 U.S. a barrel.
Gold prices dipped $3.80 an ounce to $1,232.00
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