TORONTO 鈥� Canada's main stock index gained just over 100 points Monday as strength in financial and technology stocks helped outweigh losses in energy, while U.S. markets also moved higher.
This week will give investors plenty to chew on, including earnings from several big tech names, said Mona Heidari, senior financial advisor at BlueShore Financial.
鈥淚t will be an interesting week to watch the markets,鈥� she said, especially with the U.S. election around the corner.
With central banks cutting rates and set to continue, investor sentiment has generally been positive recently, she said.
The S&P/TSX composite index closed up 101.99 points at 24,565.66.
In New York, the Dow Jones industrial average was up 273.17 points at 42,387.57. The S&P 500 index was up 15.40 points at 5,823.52, while the Nasdaq composite was up 48.58 points at 18,567.19.
Tech stocks and other sectors helped markets on both sides of the border move higher Monday despite weakness on the commodity side.
鈥淢ost likely, more rate cuts will happen both in the U.S. and in Canada,鈥� she said.
Though the Bank of Canada has said any future cuts will depend on how the economy is faring, Heidari anticipates the central bank will cut again before the end of 2024 鈥渂ecause they need to keep the momentum going.鈥�
Expectations for tech companies鈥� earnings continue to be high after they drove gains all year. Heidari thinks the sector is unlikely to disappoint this quarter.
Despite the uncertainty from geopolitical tensions as well as the upcoming U.S. election, Heidari said lately investors have been putting money back into equities and bonds after rushing to the safety of guaranteed investment certificates last year.
鈥淲e are seeing a lot of capital going back to the market,鈥� she said.
鈥淚 see it as a positive thing. It shows that people are confident to invest in the market, both the equity and the bond market.鈥�
The price of oil dropped more than six per cent Monday. Over the weekend Israel attacked Iranian military targets, a more restrained retaliation than some feared after an earlier attack by Iran.
Heidari said the drop comes as part of ongoing volatility in oil prices due to the conflict in the Middle East.
The TSX鈥檚 energy index was down 1.8 per cent as oil and gas companies鈥� stocks moved lower.
The December crude oil contract was down US$4.40 at US$67.38 per barrel and the December natural gas contract was down 23 cents US at US$2.86 per mmBTU.
The Canadian dollar traded for 71.97 cents US compared with 72.09 cents US on Friday.
The December gold contract was up US$1.30 at US$2,755.90 an ounce and the December copper contract was down a penny at US$4.36 a pound.
鈥� With files from The Associated Press
This report by The Canadian Press was first published Oct. 28, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
Rosa Saba, The Canadian Press
