TSX closes second strong week in a row

TORONTO -- North American stock markets continued their late-month rally Friday, with Canada's main index now having clawed back most of the big losses it suffered at the start of the year.

See Full Article

"The early part of this year got off to a very negatively tilted sentiment," said Colum McKinley, vice-president and portfolio manager of Canadian Equities at CIBC Asset Management.

"And, I think, we're seeing some relief over the last -- not just today -- but over the last week or so from that negative slant."

The S&P/TSX composite index closed 230.20 points higher at 12,822.13 on Friday, leaving it down 1.4 per cent or 187.82 points since the start of the year, as oil prices continue to improve.

The March contract for North American benchmark crude oil closed up 40 cents at US$33.62 a barrel.

It has now risen 18.5 per cent since finishing as low at US$28.36 last week. McKinley said there will be continued volatility in oil prices, but they will improve in the long-run as production growth slows.

The commodity-sensitive Canadian dollar also continued to trend higher on the strength in oil, up 0.22 of a U.S. cent at 71.40 cents US after having rebounded from below 69 cents US early last week.

In New York, markets were sharply higher. Good earnings reports from American companies like Microsoft, after others disappointed, helped propel the markets, said McKinley, as did rising oil prices.

The Dow Jones industrial average soared 396.66 points to 16,466.30. The S&P 500 rose 46.88 points to 1,940.24 and the Nasdaq added 107.27 points to 4,613.95.

But January was a tough month for U.S. markets, as well, despite recent gains.

The beginning of the year was the worst in the history of the Dow and the S&P 500 as both indexes fell into a correction or a drop of at least 10 per cent from a recent peak. Both are down around six per cent this month, while the Nasdaq is off about eight per cent.

Some of today's steep gains came after the Bank of Japan announced it would impose a 0.1 per cent fee on some new commercial bank deposits with the central bank, effectively a negative interest rate.

The bank said it hopes the move will encourage commercial banks to lend more, thereby stimulating investment and growth in the world's third-largest economy.

"People are interpreting that as potentially contributing to reinvigorating global growth," said McKinley.

Japan's Nikkei 225, Hong Kong's Hang Seng and the Shanghai composite all rose on the news, as did European indexes.

Elsewhere in commodities, March natural gas shot up 11.6 cents to US$2.298 per mmBtu, while April gold added 30 cents to US$1,116.40 an ounce and March copper rose 1.55 cents to US$2.067 a pound.

With files from The Associated Press



Advertisements

Latest Economic News

  • Asian shares weaker as investors await economic data

    Economic CTV News
    SEOUL, Korea, Republic Of -- Asian stock markets were weaker on Tuesday as investors stayed on the sideline before the release of a raft of economic data due later this week. Markets in Shanghai, Hong Kong and Taipei were closed on a holiday. Source
  • Trans Mountain IPO to proceed despite B.C. Green-NDP deal, Kinder Morgan says

    Economic CTV News
    CALGARY -- Kinder Morgan says it expects to proceed Tuesday with its initial public offering for the Trans Mountain expansion, just as the anti-pipeline Greens and NDP in B.C. announced they have come to an agreement that could cast the project's future into doubt. Source
  • Trans Mountain IPO to proceed despite B.C. Green-NDP deal

    Economic CBC News
    Kinder Morgan says it expects to proceed Tuesday with its initial public offering for the Trans Mountain expansion, just as the anti-pipeline Greens and NDP in B.C. announced they have come to an agreement that could cast the project's future into doubt. Source
  • Health Canada cancels recall of Ardene children's jewelry

    Economic CBC News
    In an unprecedented move, Health Canada has cancelled its recall of children's jewelry sold by Canadian retailer Ardene after follow-up tests found the pieces don't actually contain excessive amounts of lead. It's the first time that a recall notice for a consumer product has been removed since the Consumer Product Safety Act came into force in 2011. Source
  • Oilpatch recovery to boost Alberta, Saskatchewan growth, says Conference Board

    Economic CTV News
    CALGARY -- The Conference Board of Canada says a slow recovery in the oil and gas sector will allow Alberta and Saskatchewan to emerge from recession and lead the provinces in economic growth this year. Source
  • Mortgage broker's late sponsorship bet pays off as Takuma Sato ends up winning Indy 500

    Economic CBC News
    When Takuma Sato took home the checkered flag at the Indy 500 on Sunday, the Japanese race car driver wasn't the only big winner. One of the main sponsors of his car, Indiana-based lender Ruoff Home Mortgage, only decided to put financial support behind Sato's Andretti Racing Team early last week. Source
  • Boeing says trade complaint against Bombardier designed to prevent larger CSeries

    Economic CTV News
    MONTREAL -- Boeing says its trade complaint against Bombardier is designed to prevent the Montreal-based rival from using subsidies to produce a larger version of the CSeries plane that would directly compete with its own flagship narrowbody 737 aircraft. Source
  • Asian shares muted as investors await raft of economic data

    Economic CTV News
    TORONTO -- Canada's main stock index was little changed in late-morning trading as U.S. stock markets took the day off for the Memorial Day holiday. The S&P/TSX composite index was up 1.59 points to 15,418.52, after 90 minutes of trading. Source
  • TSX flat as U.S. markets take day off for holiday; loonie up

    Economic CTV News
    TORONTO -- Canada's main stock index was little changed in late-morning trading as U.S. stock markets took the day off for the Memorial Day holiday. The S&P/TSX composite index was up 1.59 points to 15,418.52, after 90 minutes of trading. Source
  • World shares muted as investors await raft of economic data

    Economic CTV News
    HONG KONG -- World stock markets were listless Monday as investors look to a raft of economic data this week and as holidays in several key markets crimped trading volume. KEEPING SCORE: In Europe, France's CAC 40 dipped 0.1 per cent to close at 5,332.47, while Germany's DAX edged up 0.2 per cent to 12,628.95. Source