Markets had an upbeat day on Monday, as Canada’s main stock index advanced in light of better-than-expected Chinese manufacturing data, which spurred demand for equities.
The Toronto Stock Exchange’s S&P/TSX Composite Index closed up 0.78% at 16,228 points, bolstered by the energy sector, which was up 1.8% as oil prices hit 2019 highs. The financials sector was also up, gaining 1.4%.
The TSX Venture Exchange fell slightly down 0.11% from its opening high of 627 to settle at 626 by the close.
The Canadian Securities Exchange gained 1% to hit 890 by Monday's close.
The Dow Jones Industrial Average soared 1%, 260 points, to 26,189.1. The Nasdaq gained 1% to 7,807.7, and the S&P 500 advanced 0.9% to 2,860.
The small-cap Russell 2000 index edged up 0.6% to 1,549.6.
In Europe, the London FTSE closed up 0.5% to 7,317.4 as positive manufacturing data out of the UK helped the pound gain 0.6% against the dollar and 0.4% against the Euro.
The French CAC increased 0.8% to end at 5,394.7, and the German DAX surged 1.4% to 11,682.
1:30 PM Canada's TSX indeed still powering up at mid-session
Canada's biggest exchange was still powering ahead at mid-session, as traders globally cheered the better-than-expected Chinese manufacturing data.
The S&P/TSX Composite Index added over 107 points at 16,209.
The Venture Exchange was a shade into negative territory though - down 1.69 at 625.
Mobile phone and tech behemoth BlackBerry (TSE:BB) was a big loser, dropping over 4% to 12.88p after surging on Friday after fourth-quarter results cheered the market.
Lithium Americas Corp (TSE:LAC) (NYSE:LAC) was up over 11% to $5.65 after a US$160-million investment by China’s Ganfeng Lithium.
Global markets
FTSE 100 closed the first day of April's trading higher as global markets cheered better-than-expected manufacturing figures from China and ahead of more votes on Brexit in the Commons.
The UK premier shares index finished up over 38 points at 7,317, while the FTSE 250 added over 121 points at 19,238.
Miners, as would be expected after decent China data, saw gains. Anglo American plc (LON:AAL) shares gained 2.34% to 2,101.5p. Glencore (LON:GLEN) added 2.59% at 326.20p.
The German DAX added nearly 156 points at 11,681. The CAC 40 added 55 at 5,405.
11am: Canadian stocks open higher thanks to optimistic China outlook
Canadian stock markets opened in positive territory on Monday morning as news from China indicates that the manufacturing sector had expanded at its fastest pace in eight months, spurring investors to start buying global equities.
The TSX opened at 16,186 before reaching 16,196 by mid-Monday trading, while the TSX Venture Exchange fell slightly from its opening high of 627 to settle at 626 in the morning.
The Canadian Securities Exchange gained 0.7% to hit 887 on Monday morning.
Junior miner Lithium Americas Corp (TSE:LAC) (NYSE:LAC) was an early mover to the upside, up nearly 12% to C$5.65 after a US$160-million investment by China’s Ganfeng Lithium.
Theratechnologies Inc (TSE:TH) was also up nearly 11% after study results showed tesamorelin, which is found in its drug EGRIFTA, significantly reduced liver fat in HIV patients.
On the downside, Friday’s enthusiasm surrounding BlackBerry Ltd (TSE:BB) (NYSE:BB)’s positive financial results waned, with the stock down around 4%.
As for commodities, gold fell around 0.2% from Friday’s close to settle at US$1,293, while oil was up 1.4% to US61.
The Canadian dollar settled at US$0.75.
Global markets: Dow leaps ahead 225 points to pass 26K milestone on Chinese manufacturing data, trade talks
US markets soared to open the second quarter after positive manufacturing data and trade news out of China.
Manufacturing in China grew in March at its fastest pace in eight months, CNBC reported overnight. The Caixin/Markit Manufacturing Purchasing Managers' Index measure 50.8 for the month, while economists had expected 49.9 for the second month in a row, according to Reuters.
A mark above 50 means expansion for the sector while anything below 50 indicates contraction.
Meanwhile, the US and China are expected to resume trade talks in Washington this week. US officials told Reuters last week that China made unprecedented proposals including a willingness to move on the issue of forced technology transfer. Treasury Sectary Steve Mnuchin was in Beijing last week.
Optimism about China has so far outweighed continued concerns about the yield curve, which remains inverted as 10-year Treasuries continues to trade lower than three-month rates. Every recession going back 50 years has been preceded by a yield curve inversion, and there’s been only one false positive.
The Dow Jones Industrial Average soared 0.9%, or 225 points, at the open to 26,153.6. The Nasdaq gained 0.9% to 7,798.5, and the S&P 500 advanced 0.8% to 2,857.8.
The small-cap Russell 2000 index edged up 0.5% to 1,547.9.
In Europe, the London FTSE was up 0.6% to 7,324.1 as positive manufacturing data out of the UK helped the pound gain 0.6% against the dollar and 0.4% against the Euro.
The French CAC increased 0.7% to 5,386.3., and the German DAX surged 1% to 11,638.4.
Andrew Kessel also contributed to this report
Contact Angela at angela@proactiveinvestors.com
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