Canada's main stock index rose on Monday after two sessions of declines as China's move to infuse liquidity in its economy supported sentiment, but a slip in energy stocks due to lower oil prices capped gains.
The TSX Composite Index had grown 79.46 points to cruise into Monday’s noon hour EST at 17,397.95.
The Canadian dollar dropped 0.21 cents to 75.31 cents U.S.
The largest percentage gainers on the TSX were Lightspeed POS, which jumped $1.11, or 2.6%, to $44.11, and Open Text, which rose $1.29, or 2.2%, to $60.85.
Semafo Inc fell nine cents, or 3.2%, to $2.70, while Oceanagold Corp settled 14 cents, or 4.9%, to $2.63.
On the economic slate, the IHS Markit Canada Manufacturing Purchasing Managers’ Index registered 50.6 in January, up slightly from December's four-month low of 50.4.
ON BAYSTREET
The TSX Venture Exchange sank 0.16 points, to 575.02.
All but three of the 12 TSX subgroups were on the march, with real-estate towering over everything with a 1% gain, while information technology and utilities each climbing 0.9%.
The three laggards were energy, gold and materials, each sagging 0.7%.
ON WALLSTREET
Stocks rose on Monday as Wall Street regained its footing after coronavirus fears sparked a steep selloff to close out January.
The Dow Jones Industrials came off their highs of the morning, but were still ahead 157.29 points to 28,413.32, staging a small recovery from Friday’s selloff, their worst since August.
The S&P 500 gained 20.65 points at 3,246.17
The NASDAQ hiked 100.72 points to 9,252.65.
Nike led the Dow higher with a 4.6% rise after analysts at UBS and JPMorgan recommended buying the stock on coronavirus-related weakness. JPMorgan called this recent pullback a “multi-year buying opportunity.”
The major averages reached their session highs after the Institute for Supply Management said its manufacturing gauge showed activity in the sector expanded. Economists polled by Dow Jones expected a contraction in manufacturing activity for January.
The death toll in China from the coronavirus reached 361 on Sunday, surpassing that of the SARS virus which lasted from 2002 to 2003, while a first death outside of China was reported in the Philippines.
Prices for the 10-Year U.S. Treasury gave back earlier gains, lowering yields to 1.52% closer to Friday’s 1.51%. Treasury prices and yields move in opposite directions.
Oil prices ditched $1.36 to $50.20 U.S. a barrel.
Gold prices faltered five dollars to $1,576.10 U.S. an ounce.
