Markets rally on positive economic data
Written on June 3, 2009
Stock markets charged ahead yesterday as economic data persuaded investors that the global economy is improving, even as General Motors Corp. filed for bankruptcy protection.
Toronto’s S&P/TSX composite index gained 233.99 points to 10,604.06 on broad-based gains. Declines were registered only by the consumer staples and gold sectors.
Statistics Canada said gross domestic product contracted at an annualized rate of 5.4 per cent in the first quarter, but that was much better than the 6.5 per cent that had been expected.
The Canadian dollar was ahead 0.06 of a U.S. cent to 91.66 cents (U.S.) after the loonie had surged almost eight cents during May.
The TSX Venture Exchange climbed 16.47 points to 1,140.55.
New York’s Dow Jones industrial average jumped 221.11 points to 8,721.44.
The Nasdaq composite index gained 54.35 points to 1,828.68, while the S&P 500 index added 23.73 points to 942.87.
The Institute for Supply Management says its index on manufacturing came in at 42.8 – its highest level since September – compared with 40.1 in March. A reading below 50 still indicates contraction.
Overseas markets had also racked up gains after Chinese brokerage CLSA Asia-Pacific Markets said its monthly purchasing managers index rose to 51 guaranteed approval payday loans no teletrack.2 in May from April’s 50.1. The market was also supported by a report showing a smaller-than-expected dip in consumer spending.
The Toronto energy sector rose as the July crude contract on the New York Mercantile Exchange gained $2.11 to $68.58 a barrel, its highest close since early November.
The base-metals sector in Toronto climbed almost 7 per cent as the price of copper on the Nymex rose 12 cents to $2.32 a pound.
Financials continued to head higher in the wake of last week’s earnings reports. Scotiabank rose $1.05 (Canadian) to $39.23, while Bank of Montreal headed up $1.15 to $44.95.
The gold sector backed off 2.3 per cent as the August bullion contract in New York slipped 30 cents (U.S.) to $977.20.
Health sciences company MDS Inc. announced a deal to sell part of its late stage drug development operations to INC Research for $50 million (Canadian). Its shares edged up two cents to $5.42.
The Canadian Press
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