Stock markets worldwide bounced back on Friday after a multi-day sell-off, while U.S. Treasury yields inched higher and the U.S. dollar held its gains.
Canada’s main stock index broke its five-day losing streak, driven by gains in healthcare shares.
The Toronto Stock Exchange’s S&P/TSX composite index finished up 97.16 points, or 0.63 per cent, at 15,414.29.
Ten of Canada’s 11 major sectors were trading higher, led by healthcare sector’s 4.2-per-cent gain.
Shares of Aurora Cannabis Inc. rose 8.6 per cent, while peer cannabis producer Canopy Growth Corp. gained 3.6 per cent.
The Canadian dollar edged higher against its U.S. counterpart as oil and stock prices rebounded, but the loonie was on track to end the week lower after multi-year peaks for Treasury yields contributed to market volatility.
Adding to the upbeat sentiment was a 0.8-per-cent rise in shares of energy companies as oil prices rose.
Materials was the only sector to decline, falling 0.4 per cent. as gold retreated from two-month highs touched on Thursday.
Kinross Gold Corp. was down 2.3 per cent, while Wheaton Precious Metals Corp. was 3.3 per cent lower and Barrick Gold Corp. lost 1.3 per cent.
Wall Street rose as investors returned to technology and other growth sectors, but gains were limited by ongoing worries about U.S.-China trade tensions and rising interest rates.
“Generally what we were seeing is more momentum and technology names selling off. Now buyers are coming back to say some of these are babies that were thrown out with the bath water,” said Laura Kane, head of Americas thematic investing at UBS Global Wealth Management.
The biggest market shakeout since February has been blamed on factors including fears about the impact of the U.S.-China tariff fight, a spike in U.S. bond yields this week and caution ahead of earnings season.
Kicking off the U.S. earnings reporting period, three of the largest U.S. banks reported double-digit profit growth on Friday. The results reflected an array of positive business factors including a lift from cost-cutting programs they implemented after the 2007-2009 financial crisis.
The Dow Jones Industrial Average rose 287.16 points, or 1.15 per cent, to 25,339.99, the S&P 500 gained 38.71 points, or 1.42 per cent, to 2,767.08 and the Nasdaq Composite added 167.83 points, or 2.29 per cent, to 7,496.89
The pan-European FTSEurofirst 300 index lost 0.25 per cent and MSCI’s gauge of stocks across the globe gained 0.85 per cent.
Trade figures from China on Friday showed China’s trade surplus with the United States hit a record high in September, providing a likely source of contention with Trump over trade policies and the currency.
The data showed solid expansion in China’s overall imports and exports, suggesting little damage to the country from the tit-for-tat tariffs with the U.S.
The dollar index rose 0.22 per cent, with the euro down 0.26 per cent to $1.1563.
U.S. Treasury yields edged up, recovering from falls in the previous session, after data showed U.S. import prices grew at a faster pace than expected last month, adding to the narrative that inflation is accelerating.
Benchmark 10-year notes last fell 4/32 in price to yield 3.1443 per cent, from 3.131 per cent late on Thursday.
Gold was down 0.5 per cent at $1,217.81 an ounce. On Thursday, bullion jumped about 2.5 per cent on safe-haven buying during an equities selloff.
Crude futures steadied late in the session on Friday, following the stock market slightly higher after earlier swinging lower on a weakening oil demand outlook.
The International Energy Agency, the West’s energy watchdog said in its monthly report that the market looked “adequately supplied for now” and trimmed its forecasts for world oil demand growth this year and next.
“This is due to a weaker economic outlook, trade concerns, higher oil prices and a revision to Chinese data,” said the IEA, which advises industrialized countries on energy policy.
Both benchmarks fell for the first time in five weeks, pressured by a big rise in U.S. inventories and fading concerns about shrinking global supplies due to looming U.S. sanctions on Iran’s oil exports. U.S. crude was down 3.6 percent on the week, while Brent crude fell 4.1 per cent.
“The weaker outlook has gotten a raised profile in the market, but there’s potential for a real supply crunch toward the end of this year,” said John Kilduff, a partner at Again Capital Management in New York. “The demand outlook is hurt right now because of the situation with the U.S. and China in particular.”
Both benchmarks fell for the first time in five weeks, pressured by a big rise in U.S. inventories and fading concerns about shrinking global supplies due to looming U.S. sanctions on Iran’s oil exports. U.S. crude was down 3.6 per cent on the week, while Brent crude fell 4.1 per cent.