Canada’s main stock index rose on Monday, as a slight recovery in oil prices helped boost the energy sector.
At 11:45 a.m. ET, the Toronto Stock Exchange’s S&P/TSX Composite index was up 36.34 points, or 0.24 per cent, at 15,047.07.
Eight of the index’s 11 major sectors were higher.
The energy sector climbed 0.3 per cent, as prices of oil inched above $60 a barrel, recovering from some of the previous session’s near-7 per-cent fall.
Husky Energy Inc. rose 1.9 per cent, while Cenovus Energy Inc. was up 1.6 per cent.
Also lifting the sentiment was a 1.5-per-cent gain in the technology sector. A 4.1-per-cent gain in Shopify Inc led the advancers.
The materials sector, which includes precious and base metals miners and fertilizer companies, added 0.2 per cent after gold prices rose on weakening dollar, with uncertainties over the outcome of an upcoming G20 meeting.
The financials sector gained 0.4 per cent.
U.S. stocks rose on Monday, fueled by gains in retailer shares during a prime holiday shopping period, while European stocks rallied after signs that Italy was preparing to rework the spending plans that have fueled tensions with the European Union.
Oil bounced back after its own “black” Friday, adding to a risk-on sentiment, and the pound rose after Britain’s Brexit agreement won approval from European leaders.
Italy’s governing coalition may reduce next year’s budget deficit target to as low as 2 percent of gross domestic product to avoid disciplinary action from the European Commission, Reuters reported.
Currently, Italy’s deficit target is 2.4 per cent, far higher than the 0.8 per cent set by the previous government. The country’s budget has put it in dispute with the Commission and alarmed the euro zone.
The prospect of a lower deficit sent Italy’s banks index up nearly 5 percent on Monday, toward its strongest day since June. An equally strong rally in bond markets sent Italian borrowing costs to their lowest since September.
The euro was down 0.03 per cent to $1.1337, while sterling was last trading at $1.2814, up 0.02 per cent on the day.
The dollar index rose 0.03 per cent.
Analysts remain cautious that the Brexit deal faces stiff opposition within the British Parliament, which is expected to vote on the agreement in around two weeks.
“During the next two weeks the pound will likely trade with increased volatility,” said Lee Hardman, a currency analyst at MUFG.
Wall Street rose as retailers anticipated $7.8 billion in sales on the largest online shopping day of the year, with shoppers who missed out on Black Friday deals expected to flock to the internet for Cyber Monday.
Technology stocks were also higher after taking a beating last week.
“We had a pretty miserable week in terms of the equity markets and sometimes you get a relief rally. Markets could be bouncing a little bit based on that,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
The Dow Jones Industrial Average rose 262.62 points, or 1.08 per cent, to 24,548.57, the S&P 500 gained 31.12 points, or 1.18 per cent, to 2,663.68 and the Nasdaq Composite added 104.17 points, or 1.5 per cent, to 7,043.16.
The pan-European STOXX 600 index rose 1.27 per cent and MSCI’s gauge of stocks across the globe shed 0.48 per cent.
On Friday, the S&P 500 recorded its lowest close in six months, down more than 10 per cent from September’s peaks, pushing it back into “correction” territory.
Oil prices rose about three percent on Monday, clawing back some of the previous session’s steep losses, although uncertainty over global economic growth and further signs of increasing supply put a cap on gains.
Brent crude futures rose $1.86 to $60.66 a barrel, a 3.2-per-cent gain. U.S. West Texas Intermediate (WTI) crude futures rose $1.44 to $51.86 a barrel, a 2.9-per-cent gain.
Prices on Friday hit their lowest since October 2017 amid intensifying fears of a supply glut. Brent sank to $58.41 a barrel, while WTI fell to $50.15 a barrel.
“We’re rebounding,” said Phil Flynn, an analyst at Price Futures Group in Chicago. “A lot of people realized that the black and blue Friday was probably overdone and cooler heads are prevailing here a little bit.”
Supporting oil prices, U.S. stock markets broadly rallied as Cyber Monday, the largest online shopping day of the year, began. Crude futures at times track with the equities market.
Reuters