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Canada’s main stock index opened higher on Monday, boosted by gold miners after prices of the yellow metal hit a record peak on worsening ties between China and the United States.
At 9:30 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 79.27 points, or 0.5%, at 16,076.33
The S&P 500 and Nasdaq rose at the open on Monday as investors shrugged off surging COVID-19 cases and U.S.-China tensions, betting instead on more stimulus and a dovish signal from the Federal Reserve to revive a battered domestic economy.
The S&P 500 opened higher by 4.21 points, or 0.13%, at 3,219.84, and the Nasdaq Composite gained 58.52 points, or 0.56%, to 10,421.70 at the opening bell.
The Dow Jones Industrial Average, on the other hand, fell 22.22 points, or 0.08%, at the open to 26,447.67.
Safe haven assets were in demand with gold prices notching a record high amid concerns over Sino-U.S. tensions, escalating coronavirus cases in southern and western U.S. states and an unexpected rise in U.S. jobless claims last week.
Trillions of dollars in fiscal and monetary stimulus have been pivotal in bringing the S&P 500 to within 5% of its record high hit in February.
Expectations are running low for any major announcements at a two-day Federal Reserve meeting this week, but analysts expect policymakers to lay the groundwork for more action in September or in the fourth quarter.
Investors are also keeping a close watch on progress over the next round of government aid ahead of enhanced unemployment benefits set to expire on Friday.
U.S. Senate Republicans on Monday are expected to unveil a $1 trillion coronavirus aid package hammered out with the White House, which will now be negotiated with Democrats.
“The market is looking at this as a nice bridge of one to one-and-a-half trillion dollars to get us to the period in which we either have a treatment, or more likely a full vaccine toward the end of the year,” said Thomas Hayes, managing member at Great Hill Capital LLC in New York.
Earnings reports will also be a major focus this week, with 189 S&P 500 companies expected to report results, including Boeing Co, Pfizer Inc, Facebook Inc, Apple Inc, Amazon.com Inc and Alphabet Inc .
Reuters
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