The TSX ticker is shown in Toronto on May 10, 2013. THE CANADIAN PRESS/Frank Gunn
Republished February 26, 2018 - 1:45 PM
Original Publication Date February 26, 2018 - 8:26 AM
TORONTO - Canada's main stock index moved higher in a broad-based advance on Monday, while the Dow Jones industrials posted a nearly 400 point increase.
The S&P/TSX composite index was up 76.21 points to 15,714.66, led by gains in the industrials, metals and energy sectors.
In New York, the Dow Jones industrial average was up 399.28 points to 25,709.27. The S&P 500 index was up 32.30 points to 2,779.60 and the Nasdaq composite index was up 84.07 points to 7,421.46.
"The domestic market, not to the upside that the U.S. equities are, is reflecting some of the upswing we're seeing in commodities," said Craig Fehr, a Canadian markets strategist at Edward Jones in St. Louis.
"Oil's having a decent day today. I think that's providing some support. Gold's also to the upside."
The April crude contract was up 36 cents to US$63.91 per barrel and the April gold contract was up US$2.50 to US$1,332.80 an ounce.
U.S. Treasury yields pulled back on Monday from the four-year high they hit last week, likely accounting for some of the strength in stock indices south of the border. The yield on the 10-year Treasury note fell to 2.85 per cent from 2.87 per cent late Friday. Higher interest rates can hurt stock prices by making bonds look more attractive as investments.
But other than the drop in rates, analysts saw few clear reasons to drive stocks much higher on Monday. Earnings reporting season is mostly done, and no big-ticket economic reports were on the calendar.
"Today's rally has been very surprising," said Randy Frederick, vice-president of trading and derivatives at the Schwab Center for Financial Research. "There doesn't seem to be a real obvious catalyst, yet we're having a banner day. It might be good to be a little careful here."
In currency markets, the Canadian dollar closed at an average trading value of 78.83 cents US, down 0.11 of a U.S. cent.
Elsewhere in commodities, the April natural gas contract was up three cents at US$2.69 per mmBTU and the May copper contract was down one cent to US$3.22 a pound.
- With files from The Associated Press.
News from © The Canadian Press, 2018