Canada's main equity index opened positive on Monday as investors awaited an announcement on the North American Free Trade Agreement as the United States and Mexico appeared to have made major progress.
The S&P/TSX Composite Index rose 101.65 points at 16,457.70.
In a potentially positive development on the trade front, The Wall Street Journal reported that the U.S. and Mexico were close to reaching an agreement on key issues holding back a renegotiation of the North American Free Trade Agreement. Reports indicated that he may be set to hold a news meeting on trade at 11 a.m. Eastern.
The Canadian dollar was up 0.85 cents to 77.03 cents
Gold prices pulled back early Monday after scoring their first weekly advance in nearly two months through Friday, when the U.S. dollar retreated for the week after an update on the Federal Reserve’s interest-rate stance. The near-term fortunes for the precious metal and the U.S. currency had reversed again by Monday morning when December gold fell $3.10, or 0.3%, at $1,210.10 an ounce.
ON BAYSTREET
The TSX Venture Exchange strengthened 3.64 points to 715.01.
Twelve of the subgroups were higher late in the morning, with health-care soaring 4.13%, base metals ahead by 1.61%, and consumer discretionary issues by 1.58%
On the downside - utility stocks shed 0.31 percent.
ON WALLSTREET
U.S. stocks traded solidly higher Monday morning, with the Dow industrials retaking a psychologically significant level at 26,000 for the first time since early February and the Nasdaq touching a round-number level at 8,000, amid enthusiasm over a possible trade deal between the U.S. and Mexico.
The Dow Jones Industrial Average rose 226 points, or 0.9%, to 26,013. The S&P 500 index gained 22 points to 2,896, a gain of 0.8%, extending its climb above its all-time high, which was hit on Friday for the first time since Jan. 26. The Nasdaq Composite Index rallied by 74 points to 8,019, a gain of 0.9%.
On the economic data front, a measure of the U.S. economy from the Chicago Federal Reserve slowed in July from June’s robust performance, owed in large part to lighter output at the nation’s factories. The Chicago Fed’s index of national economic activity registered at a positive 0.13 last month, down from an upwardly revised positive 0.48 in June.
Tesla Inc. shares slipped 0.4% after Chief Executive Officer Elon Musk late Friday said the electric-car maker would remain a public company. According to The Wall Street Journal, Musk was nagged by lingering doubts and unexpected difficulties for his plan to take Tesla private, a plan he unexpectedly announced over Twitter. The stock is up 3.7% thus far this year, with the going-private announcement a catalyst for recent gains. It is up nearly 16% over the past three months.
Pfizer Inc. was down 2% on Monday after the pharmaceutical giant reported positive Phase 3 results for its drug, tafamidis, which reduced the risk of death for patients with a rare and fatal heart disease by around 30%.
Oil futures saw subdued trade early Monday, threatening to give back some of the previous week’s gains ahead of a conference call between members of a committee monitoring the agreement between OPEC and non-OPEC producers on output levels.
West Texas Intermediate crude for October delivery on the New York Mercantile Exchange were a penny, or less than 0.1%, lower at $68.71 a barrel. October Brent crude LCOV8, +0.29% the global benchmark, was virtually unchanged at $75.83 a barrel.
The yield on the benchmark 10-year Treasury note moved slightly higher to 2.842 percent, while the 30-year Treasury bond yield rose to 2.987 percent. Bond yields move inversely to prices.
