Canada's main stock index rose on Monday, after three consecutive sessions of losses, as investors assessed fragile U.S.-Iran peace talks.
The TSX Composite Index charged ahead 209.76 points to open Monday at 35,067.10.
The Canadian dollar inched up 0.03 cents to 70.58 cents U.S.
On the economic calendar, Statistics Canada reports its consumer price index increased 3.2% year over year in May, up from an increase of 2.8% in April. On a seasonally adjusted monthly basis, the CPI rose 0.5% in May.
ON BAYSTREET
The TSX Venture Exchange eked higher 1.53 points Monday to 956.24.
The 12 TSX subgroups were evenly divided, with materials surging 1.2%, while utilities and financials up 0.8%.
The half-dozen laggards were weighed most by energy, tailing off 0.7%, while consumer staples fell 0.5%, and telecoms shrank 0.4%.
ON WALLSTREET
The S&P 500 rose on Monday, while oil prices fell, as Wall Street assessed the latest developments in the Iran war negotiations and awaits the release of inflation data closely watched by the Federal Reserve.
The Dow Jones Industrials leaped 269.71 points to begin the week at 51,835.41.
The much broader index took on 22.37 points to 7,522.95.
The NASDAQ eased 21.47 points to 26,496.46.
Brent oil futures turned negative on Monday after mediators Qatar and Pakistan said that U.S. and Iranian officials had agreed on a roadmap to reach a final deal within 60 days. Oil prices later traded around session lows after the Treasury Department authorized the sale of Iranian oil for 60 days.
Micron Technology was one of the outperformers, rising more than 3%. The move comes ahead of the chipmaker’s quarterly report, due Wednesday after the bell. Fellow chipmakers also saw gains, with Advanced Micro Devices moving up 4% and Nvidia and Intel adding 1% and 3%, respectively.
SpaceX was a laggard, however. The stock fell 8%, putting it on pace for its third straight daily decline.
A key test for the market this week will be the release on Thursday of May’s reading on the personal consumption expenditures price index, the Fed’s preferred inflation gauge. Even excluding volatile food and energy prices, core PCE is expected to increase from April.
Prices for the 10-year Treasury sagged, raising yields to 4.49% from Thursday’s 4.45%. Treasury prices and yields move in opposite directions.
Oil prices sank $1.64 to $74.90 U.S. a barrel.
Gold prices dropped $30.30 to $4,215.60 U.S. an ounce.
