Canada's main stock index posted solid gains at the open on Friday, led by materials shares, as growing hopes of a near-term Federal Reserve rate cut overshadowed concerns over a U.S. government shutdown.
The TSX opened higher 192.33 points to 30,352.92, for a jump on the week so far of more than 580 points, or 1.96%.
The Canadian dollar recovered 0.05 cents at 71.68 cents.
ON BAYSTREET
The TSX Venture Exchange sprang 10.88 points, or 1.1%, to 965.97, ballooning more than 60 points, or 6.7%, on the week.
All but one of the 12 subgroups were higher, led by health-care, up 1.9%, information technology ahead 0.8%. and real-estate stocks better by 0.7%.
Only gold was negative, and only 0.02% at that.
ON WALLSTREET
Stocks hit new records on Friday as Wall Street headed for solid weekly gains even with a U.S. government shutdown dragging on.
The Dow Jones Industrial Index rumbled higher 342.55 points to begin a volatile week’s final session at 46,862.27.
The much-broader index forged ahead 18.06 points to 6,733.49
The tech-heavy NASDAQ gathered surged 88.89 points to 22,844.05.
With Friday’s gains, the three leading indexes are pacing for a positive weekly finish. The broad market S&P 500 has risen more than 1% week to date, along with the 30-stock Dow, while the tech-heavy NASDAQ is up nearly 2% in the period.
USA Rare Earth jumped $5.49, or 24%, to $28.15, after CEO Barbara Humpton told reporters that the company is in “close communication” with the White House.
GameStop stock fell 84 cents, or 3.1%, to $26.38, after the company said in a filing it’s selling a combination of assets ranging from common stock to debt for an undisclosed amount.
Berenberg has initiated coverage of Italian supercar Ferrari maker with a buy rating U.S.-listed shares of Ferrari are up 18.7% year to date. The stock opened Friday down $3.03 to $501.06.
The government shutdown entered its third day Friday and has exacerbated investors’ underlying concerns this year about macroeconomic and policy headwinds, inflation risks and a slowing labour market.
Investors are waiting to see how long the shutdown will persist to gauge the seriousness of its economic repercussions. Shutdowns have not been market-moving events in the past.
The shutdown has led to an economic data blackout, and the Labor Department’s pause on virtually all activity has blocked the Friday release of the September non-farm payrolls report.
While that removes a factor that could lend pressure to stocks, it simultaneously lessens the amount of economic data the Federal Reserve can factor into its interest rate decision at its October meeting.
Prices for the 10-year Treasury gained a bit of ground Thursday, lowering yields down to 4.11% from Thursday’s 4.09%. Treasury prices and yields move in opposite directions.
Oil prices gained 53 cents to $61.01 U.S. a barrel.
Gold prices took on $31.30 to $3,899.40 U.S. an ounce.
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