Equities in Canada’s largest market climbed on Monday, aided by gains in materials stocks, while investor caution loomed ahead of major central bank meetings this week.
Market participants expect the U.S. Federal Reserve to hit pause on its monetary tightening spree after a 25-basis-point rate hike this Wednesday.
The TSX advanced 29.97 points to 20,666.51.
The Canadian dollar poked ahead 0.05 cents to 73.79 cents U.S.
TC Energy Corp rose 0.7% after the pipeline operator said it completed repairs on a portion of its gas transmission line in Mississippi. TC shares gained 48 cents to $56.79.
Enbridge slipped eight cents to $53.78 after it said it would acquire Aitken Creek natural gas storage facility from FortisBC Holdings Inc for $400 million.
Utilities firm Capital Power Corp added 99 cents, or 2.2%, to $45.15, and hit over a three-month high on better-than-expected first-quarter results.
On the economic slate, the S&P Global Canada Manufacturing Purchasing Managers' Index rose to a seasonally adjusted 50.2 in April after hitting 48.6 in March, its lowest level since June 2020. A reading above 50 indicates expansion in the sector.
ON BAYSTREET
The TSX Venture Exchange faded 3.01 points to 610.37.
Seven of the 12 TSX subgroups stayed above water positive with industrials stronger 0.7%, consumer discretionary better by 0.6%, and communications up 0.4%.
The five laggards were weighed most by energy, down 0.8%, health-care, off 0.6%, and gold, duller by 0.3%.
ON WALLSTREET
The Dow Jones Industrial Average climbed Monday as investors bet the government seizure of First Republic over the weekend and subsequent sale to JPMorgan Chase had sufficiently contained the regional banking crisis that has worried markets since March.
The blue-chip index hiked 50.92 points to pause for lunch at 34,149.08.
The S&P 500 increased 4.68 points to 4,174.16.
The NASDAQ Composite fell 17.31 points to 12,209.28.
The Dow is up more than 7% since hitting a closing low for that month, and the S&P 500 has climbed 8%. The NASDAQ is up 9%.
The major averages have rebounded sharply from the late-March lows reached amid the banking crisis. The Dow is up more than 7% since hitting a closing low for that month, and the S&P 500 has climbed 8%. The Nasdaq Composite is up 9%.
JPMorgan Chase shares rose 2.6% after it came on top as the winner of a weekend auction for First Republic. The big bank has acquired all of troubled lender First Republic’s deposits and a “substantial majority of assets.” This deal means that JPMorgan Chase, already one of the biggest U.S. banks, will become even larger.
JPMorgan Chase CEO Jamie Dimon said that the deal resolves much of the fallout in the banking sector that has started since the sudden collapse of Silicon Valley Bank in March.
Zions Bancorp shares declined 3.1%. Meanwhile, Western Alliance and PacWest shares tumbled 1.1% and 9.3%, respectively.
First Republic reported last week that deposits tumbled more than 40% in the first quarter, triggering further declines in the already struggling stock. Shares have cratered 97% since the start of the year. The stock is halted for trading as of Monday.
Investors are looking to several big-name companies releasing their earnings this week. Tech giant Apple and other headliners Qualcomm and AMD are scheduled to announce their quarterly results.
Prices for the 10-year Treasury gained ground, lowering yields to 3.55% from Friday’s 3.43%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.36 to $75.42 U.S. a barrel.
Gold prices dipped $7.30 to $1,991.80 U.S. an ounce.
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