Canada’s resources-heavy stock index rose on Monday as oil prices gained and investors returned from a long weekend to buy riskier assets that have been battered by concerns over a global economic slowdown.
The S&P/TSX hiked 233.07 points, or 1.2%, by noon hour Monday, to 19,084.43.
The Canadian dollar gained 0.16 cents to 77.61 cents U.S.
Markets were closed Friday for Canada Day.
Energy did most of the rumbling, with Vermilion Energy skyrocketing $2.17, or 8.9%, to $26.67, while Advantage Oil & Gas claimed 70 cents, or 8.8%, to $8.70.
In gold, Alamos Gold tacked on 68 cents, or 7.5%, to $9.71, while Equinox Gold gained 29 cents, or 5.1%, to $6.03.
Among materials, Interfor collected $1.06, or 4.1%, to $27.00, while Franco Nevada moved forward $6.64, or 3.8%, to $175.78.
Money markets see about an 80% chance of a 75-basis point interest rate increase by the Bank of Canada in July after surprisingly high inflation in May showed consumer prices at a
40-year high.
With the price of everyday essentials surging, the risk of inflation becoming entrenched is growing.
On matters macroeconomic, Markit Canada revealed its Purchasing Managers Index hit a 17-month low of 54.6 in June, down from 56.8 in May.
Oil prices gained $1.95 to $110.38 U.S. a barrel.
Gold prices were positive $5.50 to $1,807.00 U.S. an ounce.
ON BAYSTREET
The TSX Venture Exchange advanced 5.08 points to 622.34.
All 12 TSX subgroups paused for lunch in the green, with energy surging 3.4%, gold shining 2.2% brighter, and materials ahead 1.8%.
ON WALLSTREET
U.S. markets were closed for the 4th of July.