Canada’s main stock index rose over 1% on Monday in a broader rally led by technology and healthcare stocks, as investors looked forward to the U.S. Federal Reserve initiating a rate cut cycle in September.
The TSX Composite Index popped 247.24 points, or 1.1%, to move into Monday afternoon at 23,028.67.
The Canadian dollar pointed downward 0.03 cents at 73.7 cents U.S.
All major sectors on TSX logged gains supported by Celestica rallying $3.33, or 6%, to $58.98, and healthcare sector advancing 2% as it benefited from a 12-cent, or 5.5% jump in cannabis firm Tilray Brands to $2.23.
Methanex slid$3.12, or 5.4%, to $54.48, after the methanol producer agreed to buy Dutch green fuel maker OCI Global’s methanol business for $2.05 billion.
Alimentation Couche-Tard said it was open to engage in talks with Japanese retail giant Seven & i Holdings after the latter rejected former’s $38.5 billion takeover. Couche-Tard shares gathered 27 cents to $77.13.
ON BAYSTREET
The TSX Venture Exchange held onto gains of 1.85 points to 547.07.
All 12 TSX subgroups were mightier, led by health-care, rocketing 2.6%, while materials and financials each surged 1.3%.
ON WALLSTREET
U.S. stocks jumped Monday as Wall Street recovered some of the steep losses suffered last week.
The Dow Jones Industrial index leaped 537.18 points, or 1.3%, to break for lunch Monday at 40,882.59.
The S&P 500 index regained 57.42 points, or 1.1%, to 5,465.84.
The NASDAQ climbed 161.05 points, or 1%, to 16,851.90.
Boeing shares led the way higher for the Dow, rising 3%. American Express and Caterpillar also advanced. Industrials, discretionary and energy names led the S&P 500 higher as investors leaned into the market rotation.
This week, investors will watch out for two key inflation reports that could further inform the Federal Reserve’s decision at its next open market committee meeting. August’s consumer price will see the light of day Wednesday, and the producer price report is slated for release on Thursday morning.
Prices for the 10-year Treasury gained some ground, lowering yields to 3.70% from Friday’s 3.72%. Treasury prices and yields move in opposite directions.
Oil prices took on 72 cents to $68.39 U.S. a barrel.
Gold prices picked up $2.70 to $2,527.30.