Canada’s main stock index opened higher on Monday, helped by a 4.7% jump in energy stocks as oil prices gained after Moderna Inc said its experimental vaccine was 94.5% effective in preventing COVID-19.
The TSX gained 74.62 points to 16,750.26.
The Canadian dollar gathered 0.22 cents to 76.40 cents U.S.
In the economic docket, Statistics Canada reported manufacturing sales Manufacturing sales rebounded in September, rising 1.5% to $53.8 billion on higher sales of wood and chemical products.
The agency added the increase brought manufacturing sales to within 3.6% of their higher pre-pandemic levels in February.
The Canadian Real Estate Association reported Monday morning that home sales recorded over Canadian MLS® Systems in October 2020 edged back by 0.7% from September’s all-time record for monthly sales.
ON BAYSTREET
The TSX Venture Exchange gained 3.76 points to 740.13.
Eight of the 12 TSX subgroups were in the green to start Monday, as energy sprinted 4.3%, real-estate picked up 1.5%, and financials were 1.2% to the good.
The four laggards were weighed most by gold, down 1.9%, information technology, sliding 1.3%, and materials, off 1.1%.
ON WALLSTREET
U.S. stocks jumped on Monday after Moderna said preliminary trial data showed its coronavirus vaccine was more than 94% effective.
The Dow Jones Industrials spiked 339.44 points or 1.2%, to 29,819.25, and was on pace to notch a record close.
The S&P 500 achieved a new intraday high, climbing 28.7 points to 3,613.85.
The NASDAQ gained 58.65 points to 11,887.93.
The promising announcement makes the Massachusetts-based biotech firm the second drug maker to say it has a potentially effective vaccine. Moderna shares rallied nearly 11% on the day.
Similar trial results last week from Pfizer and BioNTech drove investors into underperforming names dependent on a vaccine reopening the economy. The companies said at the time that their candidate was more than 90% effective in preventing Covid-19 among participants.
Stocks that would benefit from the economy reopening led the way higher. United Airlines was up 4%, and Carnival traded 8.4% higher.
Traders were also excited after Moderna said its vaccine remains stable at 36 to 46 degrees Fahrenheit, the temperature of a standard home or medical refrigerator, for up to 30 days. It can be stored for up to six months at negative four degrees Fahrenheit.
By comparison, Pfizer’s vaccine requires a storage temperature of minus 94 degrees Fahrenheit.
To be sure, the number of coronavirus cases are still rising, thus threatening the prospects of a swift economic recovery.
More than 11 million Covid-19 infections have been confirmed in the U.S., according to data from Johns Hopkins University. Data from the COVID Tracking Project also showed that a record of more than 68,500 people in the U.S. are hospitalized with the coronavirus.
Prices for the 10-Year Treasury were unchanged, maintaining Friday’s yields at 0.9%.
Oil prices gained $1.59 to $41.72 U.S. a barrel.
Gold prices added $3.20 to $1,889.40