TORONTO 鈥� Canada's main stock index rose Monday, helped by strength in the energy sector as the price of oil also climbed, while U.S. markets were mixed.
The week was off to a mixed start after last week鈥檚 rollercoaster, said John Zechner, chairman and lead equity manager at J. Zechner Associates.
Last week began with a frenzied selloff before markets almost entirely recovered throughout the course of the week, thanks to a Thursday rally that was Wall St.鈥檚 best day since 2022.
Canadian markets were outperforming their American counterparts Monday thanks to strength in the resource sector, said Zechner. He added that a pair of deals announced Monday 鈥� an acquisition by Tourmaline Oil and news that Osisko Mining is being sold 鈥� likely gave the sector a boost.
The S&P/TSX composite index closed up 87.63 points at 22,398.93.
The energy index on the TSX rose more than three per cent Monday as the price of oil jumped above US$80 per barrel.
South of the border, the Nasdaq slightly outperformed its Wall St. peers, ticking higher while the Dow moved lower and the S&P 500 was flat.
The Dow Jones industrial average was down 140.53 points at 39,357.01. The S&P 500 index was up 0.23 points at 5,344.39, while the Nasdaq composite was up 35.31 points at 16,780.61.
Tech stocks got hammered last week, said Zechner, and have been leading the recovery as well.
As earnings season wraps up, investors鈥� focus will be on the U.S. Federal Reserve meeting this September, said Zechner. However, there will be lots to chew on in between, including the annual Jackson Hole Economic Symposium later this month.
Investors will be listening for commentary from Fed chair Jerome Powell on rate cuts, said Zechner.
鈥淧eople wonder if he鈥檚 going to signal a bit more ease,鈥� he said, noting that markets recently amped up bets for a 50-basis-point cut in September, instead of just 25.
This week will bring more economic data on retail sales and inflation in the U.S., as well as earnings from some major retailers, said Zechner.
鈥淚f all of those signal a continued slow down ... you are definitely going to build a bigger chance of a half-point rate cut in September,鈥� he said.
As worries multiply that the U.S. economy might overshoot its soft landing, weaker economic data is increasingly being met with negativity in the equity market instead of with optimism tied to interest rate cuts, noted Zechner.
The Canadian dollar traded for 72.79 cents US compared with 72.82 cents US on Friday.
The September crude oil contract was up US$3.22 at US$80.06 per barrel and the September natural gas contract was up five cents at US$2.19 per mmBTU.
The December gold contract was up US$30.60 at US$2,504.00 an ounce and the September copper contract was up eight cents at US$4.07 a pound.
鈥� With files from The Associated Press
This report by The Canadian Press was first published Aug. 12, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
Rosa Saba, The Canadian Press
