Canada's main stock index moved up at open on Monday, aided by gains in materials stocks, while investor caution loomed ahead of major central bank meets this week.
The TSX picked up Monday where it left off Friday, tacking on 99.37 points to 20,636.54.
The Canadian dollar jumped 0.28 cents to 73.80 cents U.S.
Among company news, TC Energy Corp said it has completed repairs on a portion of its Columbia Gulf Transmission gas transmission line in Mississippi that was halted earlier. TC shares gained 48 cents to $56.79.
Enbridge Inc said it would acquire Aitken Creek natural gas storage facility in British Columbia (B.C.) from FortisBC Holdings Inc for $400 million. Enbridge shares dipped two cents to $53.85.
Cargojet Inc reported disappointing results for the first quarter. Shares in Cargojet moved higher $4.36, or 4.3%, to $106.26.
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 edged higher 1.64 points to 615.02.
All but two of the 12 TSX subgroups started the day positive with materials better by 0.8%, while consumer discretionary stocks were up 0.7%, and health-care was stronger 0.6%.
The two laggards were information technology, down 0.1%, and energy, off a mere 0.02%.
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 increased 65.42 points to begin the session out at 34,163.58.
The S&P 500 collected 2.04 points to 4,171.52.
The NASDAQ Composite fell 19.56 points to 12,207.02.
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%.
PMorgan Chase shares rose 2.6% on the news of its deal with First Republic. The big bank has acquired all of troubled lender First Republic’s deposits and a “substantial majority of assets.”
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PMorgan 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 fell 0.7%. Meanwhile, Western Alliance and PacWest shares buck the trend, gaining 2.3% and 2.1%, 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 morning.
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nvestors 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. Meanwhile, the markets will be closely watching the outcome Federal Reserve’s May meeting on Wednesday.
Prices for the 10-year Treasury gained ground, lowering yields to 3.52% from Friday’s 3.43%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.06 to $75.72 U.S. a barrel.
Gold prices dipped $1.60 to $1,997.50 U.S. an ounce.
