At the open: TSX rises on energy boost - The Globe and Mail

Canada’s main stock index opened higher on Tuesday as gains in oil prices lifted the heavyweight energy sector, with sentiment bolstered by U.S. President Donald Trump’s assurance that the trade deal with Beijing was intact.

At 9:31 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 147.06 points, or 0.95%, at 15,663.96.

Wall Street’s main indexes opened higher and the Nasdaq hit a record high on Tuesday as investors took heart from reassurances that the trade deal with China was intact, while upbeat business activity data from Europe boded well for U.S. surveys due later.

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The Dow Jones Industrial Average rose 134.43 points, or 0.52%, at the open to 26,159.39.

The S&P 500 opened higher by 20.84 points, or 0.67%, at 3,138.70. The Nasdaq Composite gained 74.35 points, or 0.74%, to 10,130.83 at the opening bell.

“The China Trade Deal is fully intact,” President Donald Trump tweeted late on Monday after White House adviser Peter Navarro sparked confusion by saying the deal was over, roiling risk assets globally and sending S&P stock futures down as much as 1.7%.

While heightened tensions between Washington and Beijing this year have been a cause for concern, monetary and fiscal support worth trillions of dollars, businesses restarting and encouraging economic data have lifted the benchmark S&P 500 about 42% higher from its pandemic low hit in March. It is now just about 8% below its Feb. 19 record high.

A boost from technology stocks helped Wall Street’s three major indexes close higher on Monday, with the tech-heavy Nasdaq registering its fourth record closing high this month.

“There’s a lot of money on the sidelines and as the country reopens, as the economy recovers, that money will be forced back in and that’s why we have a little bit more room to run here,” said Thomas Hayes, managing member at Great Hill Capital LLC in New York.

“And then probably, we start to take a rest towards the end of the summer for a little bit before the economy truly starts to catch up to where the market is.”

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After European stock markets were boosted by better-than-feared business activity surveys for June, all eyes will be on U.S. manufacturing and services sector PMI numbers, due 9:45 a.m. ET.

Reuters

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2020-06-23 09:53:54Z
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