TORONTO — North American stock markets climbed amid positive signals in Canada and elsewhere about the strength of a post-pandemic rebound.
The good mood started with Chinese retail sales numbers moving back into positive terrain compared with a year earlier.
Industrial production accelerated in the U.S., business confidence was stronger than expected in Germany and Canadian factory sales increased for a third straight month in July.
They rose seven per cent from June, helped by motor vehicle, petroleum and coal sales, Statistics Canada reported Tuesday.
“The gains that we’re seeing in Canada are largely consistent with that optimistic mood in the market and the improved appetite for risk in general,” said Candice Bangsund, portfolio manager for Fiera Capital.
She said the risk-on trade was in equities, currencies, commodities, and bond yields.
“So that has added to, of course, that narrative for a faster-than-expected recovery in economic growth.”
On the virus front, she said, there’s been optimism regarding the potential for a successful vaccine from a couple of lead candidates in the last few days.
And investors are looking forward to Wednesday’s Federal Reserve meeting where a dovish approach is expected to continue with interest rates “pinned lower at these rock-bottom levels for an extended time.”
The S&P/TSX composite index closed up 71.13 points to 16,431.27.
In New York, the Dow Jones industrial average inched up 2.27 points at 27,995.60. The S&P 500 index gained 17.66 points at 3,401.20, while the Nasdaq composite rose 133.67 points or 1.2 per cent to 11,190.32.
Nasdaq gained the most to partially recover from the tech-heavy market’s near five-per-cent loss last week.
“(Tech shares) sold off the most last week. Now they’re recouping some of those losses now that the mood has improved here this week,” Bangsund said in an interview.
The TSX was supported