Equities in Canada’s largest exchange started off the second quarter of 2019 on a strong footing Monday, as a surprise recovery in China's factory activity spurred demand for equities globally.
The S&P/TSX Composite Index spiked 125.97 points to end Monday's session at 16,228.06
The Canadian dollar edged ahead 0.19 cents at 75.1 cents U.S.
Consumer discretionary stocks were kings of this session, as Canadian Tire strengthened $1.45, or 1%, to $145.44, and Hudson’s Bay Company advanced 29 cents, or 3.9%, to $7.68.
Energy stocks had a party, too, as Suncor Energy soared 58 cents, or 1.3%, to $43.89, while Cenovus Energy surged 53 cents, or 4.5%, to $12.13.
Financials were well off, as well, as RBC took on $1.64, or 1.6%, to $102.46, while National Bank improved $1.02, or 1.7%, to $61.33.
Gold stocks, however, did fade back, as Barrick Gold lost 50 cents, or 2.7%, to $17.82, while Agnico Eagle Mines doffed $1.07, or 1.8%, to $57.03.
Among materials, Stella Jones faded 39 cents to $44.77.
In communications, BCE docked 20 cents to $59.14, while Rogers Communications stepped back 41 cents to $71.46.
On the economic beat, Canada’s Manufacturing Purchasing Managers’ Index registered 50.5 in March, down from 52.6 in February and only slightly above the neutral 50.0 mark.
ON BAYSTREET
The TSX Venture Exchange eased 0.7 points to 626.19
Seven of the 12 Toronto subgroups were positive on the day, as consumer discretionary leaped 2.2%, energy popped 1.7%, and financials were richer by 1.4%.
The five laggards were weighed most by gold, sliding 2.2%, materials, off 0.7%, and communications, dipping 0.3%.
ON WALLSTREET
Stocks jumped on Monday as strong manufacturing data out of the U.S. and China eased worries of a possible global economic slowdown.
The Dow Jones Industrials galloped 338.27 points, or 1.3%, to 26,266.95, led by gains in United Technologies, Caterpillar and J.P. Morgan Chase. Monday's session also market the Dow's first close above 26,000 since Feb. 26.
The S&P 500 added 32.79 points, or 1.2%, to 2,867.19, as the financials sector outperformed.
The NASDAQ Composite gained 99.59 points, or 1.3%, to 7,828.91, on gains from Facebook, Amazon, Netflix and Alphabet.
Amazon rose more than 1.5% after analyst at Oppenheimer hiked his price target on the stock to $2,085 from $1,975, citing AI and cloud adoption.
Bank stocks rose broadly. Citigroup, Goldman Sachs, Morgan Stanley, Bank of America and J.P. Morgan Chase all closed at least 2.5% higher.
Monday's gains came after the S&P 500 notched last week its best start to a year since 1998 and its strongest quarterly performance since 2009. The broad index gained 13.1% in the first quarter, led by the technology sector.
Bank stocks rose broadly. Citigroup, Goldman Sachs, Morgan Stanley, Bank of America and J.P. Morgan Chase all traded at least 2% higher.
U.S. manufacturing activity expanded last month, rebounding from its lowest level since late 2016, according to data from the Institute for Supply Management. The Dow and S&P 500 jumped to their highs of the day on the data.
The Caixin/Markit Manufacturing Purchasing Managers' Index jumped to 50.8 in March — its highest level in eight months — after economists polled by Refinitiv expected a print of 49.9. A number above 50 indicates expansion; a number below 50 shows contraction.
In other news boosting markets, the U.S. and China recently concluded their latest round of trade talks. U.S. officials last week said China had made proposals on a number of issues — including forced technology transfers — that go further than previous commitments.
The two superpowers are set to resume talks in Washington this week. Both countries have targeted billions of dollars' worth of each other's goods with tariffs in their protracted trade dispute.
Prices for the benchmark 10-year U.S. Treasury fell hard, raising yields to 2.50% from Friday’s 2.41%. Treasury prices and yields move in opposite directions.
Oil prices added $1.52 to $61.66 U.S. a barrel.
Gold prices settled seven dollars to $1,291.50 U.S. an ounce.
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