TSX rallies as oil prices and loonie stabilize

first_imgThe S&P/TSX composite index advanced 207.35 points or 1.38% to 15,241.88 on Monday, with materials and gold stocks leading the way.In New York, the Dow Jones industrial average soared 410.37 points or 1.70% to 24,601.27. The S&P 500 index was up 36.45 points or 1.39% to 2,656.00, and the Nasdaq composite index was up 107.47 points or 1.56% to 6,981.96.“The strength today is a continuation of the rebound we saw midday last Friday. I would still categorize this as a little bit more of a reflex to the extreme selling we saw last week, and I say that because the underlying data has remained categorically positive,” said Craig Fehr, a Canadian markets strategist at Edward Jones in St. Louis.“I would say more broadly the economic data around the world suggests that growth is on the upswing and corporate earnings data continues to come in quite strong. And I’d say those were trends that never really saw disruption, even though we saw major disruption in the performance of global stock markets last week.”Among some of the big earners Monday was Restaurant Brands International Inc. The owner of Burger King and Tim Hortons moved up $4.39, or 6.18%, to $75.48 after outperforming analyst expectations on its fourth quarter profit.Meanwhile, Shopify Inc. jumped $10.67, or 7.10%, to $161.05 amid news the Ontario government has inked a deal to use its e-commerce platform for cannabis sales online and in stores as part of its plan to be the province’s sole distributor of legal recreational marijuana.In currency markets, the Canadian dollar closed an average trading value of US79.35¢, up 0.04 of a U.S. cent — ending last week’s five-day slide.Also readLoonie down amid market turmoil, but not for longOn the commodities front, the March crude contract was up US9¢ to US$59.29 per barrel after sharp drops all of last week and the March natural gas contract was down US3¢ at US$2.55 per mmBTU.The April gold contract was up US$10.70 to US$1,326.40 an ounce and the March copper contract was up US5¢ to US$3.09 a pound. Canada’s main stock index surged more than 200 points in a broad-based advance as U.S. stocks rallied for a second session in a row, erasing some of the massive losses suffered last week.The gains came after the Toronto stock index dropped more than 8% from its all-time high and leading Wall Street indexes slumped into a “correction” for the first time in two years. Market commentators believe the abrupt stock market rout that began two Fridays ago might have been triggered by a combination of events that rattled investors, including worries about a potential rise in U.S. inflation or interest rates. Toronto stock market dips on weakness in the energy and financials sectors Related news S&P/TSX composite hits highest close since March on strength of financials sector Share this article and your comments with peers on social media Keywords Marketwatch Digital design economic Stock market chart bluebay/123RF TSX gets lift from financials, U.S. markets rise to highest since March David Hodges Facebook LinkedIn Twitterlast_img read more