Equity markets rose for the third straight day on Monday after the United States and China struck a preliminary trade deal, and as shares of cinema operator Cineplex surged after a $1.65-billion U.S. buyout deal.
The TSX Composite Index raced 82.3 points higher to moved into Monday’s noon hour at 17,085.43
The Canadian dollar gained back 0.22 cents at 76.06 cents U.S.
Cineplex’s shares soared 41%, leading gainers on the TSX, after British peer Cineworld said it would buy the company as it looks to tackle increasing competition from online streaming services.
Hexo fell 5.4%, the most on the TSX, after the cannabis producer reported quarterly results.
On the economic slate, Statistics Canada said foreign investors acquired $11.3 billion of Canadian securities in October, mainly bonds. Meanwhile, Canadian investors increased their holdings of foreign securities by $2.0 billion, also mainly in the form of bonds.
Also, the Canadian Real Estate Association declared home sales recorded via Canadian MLS Systems inched up by 0.6% November 2019.
Notching its ninth straight monthly gain, CREA stats activity stands 20% above the six-year low reached in February 2019 but 6% to 7% below heights recorded in 2016 and 2017.
ON BAYSTREET
The TSX Venture Exchange gained 0.58 points to 541.11
Eight of the 12 subgroups gained ground, as energy jumped 1.3%, communications hiked 1%, and utilities were stronger by 0.8%.
The four laggards were weighed most by gold, off 1.4%, health-care, down 1%, and materials, weaker by 0.3%.
ON WALLSTREET
Stocks hit record highs on Monday and were on pace for its fourth straight gain as a so-called phase one trade deal between China and the U.S. clears the path higher for stocks to end a banner year.
The Dow Jones Industrials leaped 186.29 points, to break for lunch at a new all-time high of 28.321.67
The S&P 500 gained 28.1 points from Friday’s record close to 3,196.90
The NASDAQ advanced 95.47 points, or 1.1%, from Friday’s all-time high to 8,830.35
Tech shares hit a record as the sector surged more than 1% as Micron Technology traded 4.2% higher. Western Digital was the best-performing tech stock, gaining 6.8%. Goldman Sachs propelled the Dow to an all-time high, rising 2.2%.
Monday’s gains were kept in check by a 2.8% drop in Boeing. Shares of the aerospace giant fell after The Wall Street Journal reported Sunday the company was nearing a decision on possibly halting or cutting production of the 737 Max.
The report follows Federal Aviation Administration chief Steve Dickson telling the media last week the 737 Max jet’s return was unlikely to be cleared until 2020.
On the data front, the National Association of Home Builders/Wells Fargo Housing Market Index rose in December to its highest level in 20 years. Meanwhile, data from IHS Markit showed U.S. business activity hit a five-month high in December.
Sentiment was also lifted by strong economic data out of China. Chinese industrial production rose 6.2% in November on a year-over-year basis, topping expectations. Retail sales in China also jumped 8% last month.
The U.S. and China announced Friday they will move forward with a so-called phase one trade deal. As part of the agreement, the U.S. will roll back some levies on Chinese products and China will increase its purchases of U.S. agricultural products. Treasury Secretary Steven Mnuchin said will be inked in January.
Prices for the 10-Year U.S. Treasury fell, raising yields to 1.88% from Friday’s 1.82%. Treasury prices and yields move in opposite directions.
Oil prices added nine cents to $60.16 U.S. a barrel.
Gold prices moved lower $1.80 at $1,479.40 U.S. an ounce.
Dow Finds Record Highs, Seek 4-Day Streak