Canada‘s main stock index rebounded on Monday, after posting its biggest decline in more than a year in the previous session, as a near 5% jump in crude prices lifted energy stocks.
At 9:44 a.m. ET (14:44 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 86.7 points, or 0.41%, at 21,212.6.
The energy sector climbed 1.6%, gaining its footing after recording the worst session since Dec. 2020 on Friday.
Crude prices jumped as investors looked at the Omicron coronavirus variant concerns that led to a drop in oil and financial markets on Friday as exaggerated. [O/R]
Sentiment in global markets improved as investors waited for more details to assess the severity of the Omicron coronavirus variant on the world economy. [MKTS/GLOB]
“While market participants continue to have more questions than answers for the moment, the general tone coming into the new week certainly feels a lot less panicky,” said Arthur Hogan, chief market strategist at National Securities in New York.
The benchmark equity index’s record-breaking rally paused in the last few weeks as weakness in commodities and concerns around COVID-19 resurgence in Europe dented sentiment. However, the index was set to end the month in positive territory with consumer discretionary stocks and miners leading gains.
The materials sector, which includes precious and base metals miners and fertilizer companies, added 0.5%.
On the economic front, producer prices in Canada rose by 1.3% in October from September on higher prices for energy and petroleum products, Statistics Canada said.
Meanwhile, domestic investors await bank earnings this week and will be seeking more information on dividends and buybacks, as earlier this month Canadian regulators granted financial institutions approval to return more capital to shareholders.
HIGHLIGHTS
Oil producer Vermilion Energy Inc was the biggest percentage gainer on the index followed by lithium miner Lithium Americas Corp.
The TSX posted no new 52-week highs and one new low.
Across Canadian issues, there were five new 52-week highs and 13 new lows, with total volume of 46.61 million shares.
(Reporting by Amal S in Bengaluru; Editing by Vinay Dwivedi)
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