Equities in Canada’s largest market rose on Monday, as gains in energy and mining stocks helped the index bounce back from last week's losses triggered by hawkish comments from the U.S. Federal Reserve.
The TSX Composite index thundered higher 202.95 points, or 1%, to roll into noon hour Monday at 20,202.54.
The Canadian dollar climbed 0.48 cents to 80.82 cents U.S.
MEG Energy led gains on the TSX with a 7.5% jump, or 65 cents, to $9.30, after BMO raised its price target on the stock. Turquoise Hill Resources, up 65 cents, or 3.2%, to $20.75, was the second-biggest percentage gainer.
Lundin Mining fell $1.34, or 11.8%, the most on the TSX, to $9.99.after the miner cut its annual production outlook for the Canderlaria mining complex.
OrganiGram Holdings was down two cents to $3.58.
With fiscal spending booming and households flush with cash, investors are betting that the Bank of Canada's next tightening cycle, expected to begin in 2022, will result in interest rates climbing above the previous peak for the first time in decades.
ON BAYSTREET
The TSX Venture Exchange dropped 3.3 points to 943.53.
All but one of the 12 TSX subgroups were up midday, led by energy, ahead 2.9%, information technology, up 1.6%, and consumer discretionary stocks, better by 1.5%.
The lone laggard was in consumer staples, falling 0.4%.
ON WALLSTREET
U.S. stocks climbed on Monday as the market attempted to recover some of the losses caused by the Federal Reserve’s policy shift.
The Dow Jones Industrials sprang back to life Monday, jumping 508.18 points, or 1.5%, to pause for lunch at 33,798.26, rebounding from its worst week since October.
The S&P 500 recouped 51.15 points, or 1.2%, to 4,217.60,
The NASDAQ restocked 99.12 points to 14,129.50, as some key tech names including Amazon, Tesla and Netflix all traded in the red.
Commodity stocks that were hit hard last week led the market comeback on Monday as the S&P 500 energy sector rallied nearly 3%. Devon Energy and Occidental Petroleum jumped 4% each, while Exxon and Chevron were both up 2% apiece.
Reopening plays including Norwegian Cruise Line, Gap and Boeing were higher. Banks including JPMorgan, Bank of America and Goldman Sachs also rebounded.
Prices for 10-Year Treasurys stumbled, raising yields to 1.48% from Friday’s 1.44%. Treasury prices and yields move in opposite directions.
Oil prices tacked on $1.68 to $73.32 U.S. a barrel.
Gold prices recovered $15.30 to $1,784.30 U.S. an ounce.
