Canadian stocks gained a third day as commodities advanced and U.S. Federal Reserve Chair Janet Yellen reiterated her intention to raise rates only gradually once the economy improves
The S&P/TSX Composite Index gained 49.38 points to close Monday at 14,276.16, its highest level since August.
The index is up more than 21% from its Jan. 20 low, after climbing out of a bear market on Friday propelled by resurgence in commodities producers and big banks.
The Canadian dollar leaped 0.74 cents to 78.03 cents U.S.
First Quantum Minerals jumped 91 cents, or nearly 10%, to $10.06, and Teck Resources hiked $1.02, or 7.4%, to $14.87, to lead raw-materials producers higher. Iron ore futures jumped in China while zinc advanced an eighth day, the longest streak since December 2013.
Copper and nickel also advanced.
Among energy issues, Enerplus climbed 46 cents, or 5.9%, to $8.20, while Suncor added 22 cents to $35.82.
Consumer staples struck a sour note, as Metro retreated eight cents to $45.03.
Gold faded, too, as Barrick Gold plunged 54 cents, or 2.2%, to $24.27.
ON BAYSTREET
The TSX Venture Exchange gained 8.87 points, or 1.3%, to close at 702.59
Seven of the 13 TSX subgroups were positive on the day, with metals and mining issues galloping 5.8%, energy better by 1.8%, and materials up 0.8%.
The six laggards were weighed most by consumer staples, sinking 1%, gold, down 0.8%, and real-estate, off 0.7%.
ON WALLSTREET
U.S. stocks closed higher Monday, with energy leading as oil rose, after comments from Federal Reserve Chair Janet Yellen remained positive on the economy while omitting a specific reference to the timing of a rate hike.
The Dow Jones Industrials barreled ahead 113.27 points to 17,920.33, with Boeing contributing the most to gains and Home Depot having the greatest negative impact.
The S&P 500 gained 10.28 points at 2,109.41, at its highest since Nov. 3. Energy jumped about 2% in its best day since April, as U.S. crude oil futures settled at their highest since July.
The NASDAQ picked up 26.19 points to 4,968.71.
Yellen's midday remarks at the World Affairs Council of Philadelphia did not give a specific time period for the next hike but said the Fed funds rate probably needs to rise gradually over time. Yellen said while the overall labour market situation has been quite positive, Friday's report was "disappointing."
In economic news, Reuters reported the Fed's index on labour market conditions fell in May for a seventh-straight month to minus 4.8, the lowest since May 2009.
Markets were pricing in a 4% chance of a June rate hike as of early Monday morning, according to Jefferies. Odds for a July hike were 32% and 52% for September
Prices for the 10-year Treasury sagged, raising yields to 1.73% from Friday’s 1.7%. Treasury prices and yields move in opposite directions.
Oil prices tacked on $1.16 a barrel to $49.78 U.S.
Gold prices gained $4.90 to $1,247.80 U.S. an ounce.
