Canada’s main stock index hit another record high on Monday in a broad-based rally led by energy and mining stocks, while September rate cut optimism in the United States also boosted investor sentiment.
The TSX Composite Index gained 41 points, off its highs of the morning, to 23,327.08.
The Canadian dollar prospered 12 cents to 74.14 cents U.S.
The Canada Industrial Relations Board ordered an end to work stoppages at the country’s largest railways that posed a threat to Canada’s export-driven economy. Shares in Canadian National gained 45 cents to $159.16, while those for rival Canadian Pacific dropped 22 cents to $110.62.
Among important earnings, major lenders like Bank of Nova Scotia, Royal Bank of Canada, and the National Bank of Canada are expected to report their quarterly results this week.
Scotiabank shares grabbed nine cents midday to $65.54. Those in RBC ditched 33 cents to $155.76, while National shares took on 42 cents to $120.38.
Among corporate news, Givex shares jumped 49 cents, or 50.5%, to $1.46 after Shift4 Payments agreed to acquire the Canadian technology firm in a deal valued at $200 million.
ON BAYSTREET
The TSX Venture Exchange let go of 1.97 points to 576.06.
All but four of the 12 TSX subgroups were still in plus territory, with energy ahead 0.9%, while consumer discretionary stocks up 0.6%, and real-estate advanced 0.4%.
The three laggards were gold, down 0.6%, with information technology and materials off 0.3% each. Health-care issues were unchanged by noon.
ON WALLSTREET
The Dow Jones Industrial Average rose to a record Monday, putting behind an early August selloff as traders await Federal Reserve rate cuts on the horizon.
The 30-stock index pulled upward 33.75 points to observe noon EDT at 41,208.83, down from its dizzy heights of the morning.
The S&P 500 index slipped 19.2 points to 5,615.41.
The NASDAQ retreated 160.18 points to 17,717.62.
Traders also appeared to be rotating out of tech and into other areas of the market. The S&P 500 energy sector was up more than 1%, while tech fell 1.5%.
The market kicked off August under pressure, as concerns over a possible recession, and the unwind of a popular hedge fund trade linked to the Japanese yen, pulled stocks off their record levels. The S&P 500 lost 3% on Aug. 5 — its biggest one-day loss since 2022. The Dow also had its worst sell-off in about two years that day, plunging more than 1,000 points.
Since then, though, expectations of lower Federal Reserve interest rates and improving U.S. economic data have sent stocks soaring. The S&P 500 has surged 8% since Aug. 5 and was less than 1% away from its record high, set in mid-July, while the Dow has soared about 7%
The July personal consumption expenditures reading is due for release on Friday.
Prices for the 10-year Treasury decreased, raising yields to 3.81% from Friday’s 3.80%. Treasury prices and yields move in opposite directions.
Oil prices picked up $2.37 at $77.20 U.S. a barrel.
Gold prices vaulted $3.50 to $2,549.80.
