Canadian stock market rebounds – Xinhua

This Article Was Originally From This Site

Video PlayerClose

TORONTO, Sept.11 (Xinhua) — Canada’s main stock market, which fell for five straight days, rebounded Monday with financial stocks leading the rally because Hurricane Irma weakened and North Korea refrained from a missile test to mark its 69th anniversary.

The Toronto Stock Exchange’s benchmark Standard & Poor’s/TSX Composite Index rose 54.98 points, or 0.37 percent, to end the day at 15,040.30. Only two of the index’s 10 main groups ended lower.

The financials group rose 0.7 percent as global bond yields, which fell over recent weeks by safe-haven demand, rebounded.

Tahoe Resources surged 38.8 percent to 7.90 Canadian dollars after a Guatemalan court reinstated the company’s license at its Juan Bosco and El Escobal mines.

Canada’s 10-year yield, which had bucked the global trend last week by climbing as the Bank of Canada raised interest rates, touched its highest intraday since July 31 at 2.042 percent.

Higher bond yields reduce the value of insurance companies’ liabilities and increase net interest margins of banks.

Manulife Financial Corp rose 1.3 percent to 23.94 Canadian dollars while Royal Bank of Canada, Canada’s biggest bank gained 0.6 percent to 91.06 Canadian dollars.

Rally for bank stocks were more moderate than those for life insurance companies due to worries that a slowdown in the housing market will hold back loan growth, Scott said.

The energy group rose 0.8 percent as oil prices climbed while the materials group, which includes precious and base metals miners and fertilizer companies, lost 0.9 percent.

The Canadian dollar gained 0.06 cents to 82.34 cents U.S. while oil prices recovered 53 cents to 48.01 Canadian dollars and gold prices fell 14 dollars to 1,336.90 U.S. dollars an ounce.

This Article Was Originally From *This Site*