Monday, October 20th11.8°C
23836
22924

TSX jumps up

The Toronto stock market registered a solid gain Monday, building on increases from last week as commodity prices rose and traders looked ahead to a busy week of important economic data and a slew of quarterly earnings reports.

The S&P/TSX composite index rose 92.47 points to 12,312.67.

The strong advance came on top of a 1.28 per cent gain last week as bargain hunters stepped up after the index tumbled over two per cent in the previous week on signs of slower than expected growth in China and a big retreat in gold prices.

"Between two weeks ago and then last week, with a bit of the rebound, I think it shows that there are still a lot of reasons to be relatively bullish long-term about the (Canadian) market," said Craig Fehr, Canadian markets specialist at Edward Jones in St. Louis.

"There’s a good justification for buying on these dips."

The Canadian dollar rose 0.51 of a cent to 98.85 cents US.

U.S. markets were also positive amid signs that Americans are spending more despite the imposition of higher payroll taxes at the start of the year and further indications of an improving housing market.

The Dow Jones industrial average climbed 106.2 points to 14,818.75 as the U.S. Commerce Department said American consumer spending increased 0.2 per cent in March. That followed a 0.7 per cent jump in the previous month.

Income increased 0.2 per cent last month, following a gain of 1.1 per cent in February

The Nasdaq composite index was 27.76 points higher to 3,307.02 and the S&P 500 index closed up 11.37 points to 1,593.61.

Other data showed that the number of Americans who signed contracts to buy homes rose in March to the highest level in three years. The National Association of Realtors says that its seasonally adjusted index for pending home sales rose 1.5 per cent to 105.7.

Prices were higher across the board on commodity markets Monday. The gold sector was up about one per cent as the June bullion contract in New York rose $13.80 to US$1,467.40 an ounce amid a U.S. dollar that weakened ahead of a two-day meeting on interest rates by the U.S. Federal Reserve.

The Fed wraps up its two-day meeting Wednesday and investors are looking to see how supportive officials are in extending its third round of quantitative easing. That easing has taken the form of the Fed spending US$85 billion a month on mortgage backed securities and government Treasurys to keep long-term rates low and encourage lending.

The policies also raise the risk of inflation and gold is seen as a hedge against rising prices.

Barrick Gold Corp. (TSX:ABX) climbed 69 cents to C$19.50.

Kinross Gold Corp. (TSX:K) faded seven cents to $5.49 as it announced it is going ahead with a full feasibility study aimed at a $2.7-billion expansion of its Tasiast open pit gold mine in Mauritania.

July copper in New York gained four cents to US$3.23 pound and the base metals component rose 1.25 per cent. First Quantum Minerals (TSX:FM) was ahead 62 cents to $17.29.

The energy sector climbed almost one per cent with the June crude contract on the New York Mercantile Exchange ahead $1.50 to US$94.50 a barrel.

The Canadian Press


Read more Business News

22689


Recent Trending




Today's Market
S&P TSX14337.77+110.09
S&P CDNX811.351.22
DJIA16399.6719.26
Nasdaq4316.075+57.637
S&P 5001904.01+17.25
CDN Dollar0.8863+0.0004
Gold1247.80+3.1001
Oil81.45+0.07
Lumber330.40-0.50
Natural Gas3.669-0.001

 
Okanagan Companies
Pacific Safety0.10-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.12+0.01
Cantex0.055-0.025
Anavex Life Sciences0.191+0.001
Metalex Ventures0.050.00
Russel Metals32.28-0.07
Copper Mountain Mining1.99+0.05
Colorado Resources0.15+0.005
ReliaBrand Inc0.0111-0.0019
Sunrise Resources Ltd0.060.00
Mission Ready Services0.450.00

 



22980

FEATURED Property
20431452033 Southview Avenue
4 bedrooms 3 baths
$445,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...


Experts share strategies in Kelowna

The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...

_








Member of BC Press Council


22771