Toronto stock market starts week with broad rally led by energy sector

TORONTO – Canada’s main stock index got a lift to start a holiday-shortened week with a broad-based rally led by the energy sector.

The month of June looks set to end with the same trajectory as April and May, in a rebound from the March lows.

The first half of the year was dynamic with a big drop as the COVID-19 pandemic resulted in an economic shutdown followed by a swift market recovery, said Craig Fehr, investment strategist, Edward Jones

“I think as we progress from here, markets are really going to take their cues from the incremental progress, or the lack thereof, in the economic restart.”

The S&P/TSX composite index closed up 200.74 points at 15,389.72. That’s less than 200 points or 1.3 per cent up for the month with one day of trading to go before the Canada Day holiday.

In New York, the Dow Jones industrial average was up 580.25 points at 25,595.80. The S&P 500 index was up 44.19 points at 3,053.24, while the Nasdaq composite was up 116.93 points at 9,874.15.

Markets partially recovered from last week’s selloff despite ongoing concern about rising COVID-19 infections in some U.S. states. Unlike earlier cases that prompted a broad lockdown, the latest rise in cases doesn’t seem to include a commensurate rise in hospitalizations and deaths.

“And so while that’s a small silver lining I think it’s a reflection of the fact that we are seeing some progress in the evolution of this health care crisis,” Fehr said in an interview.

However, he said markets have been anxious because of the rise in cases and the potential for reopening efforts to slow.

“I just don’t think it’s going to be one direction or another. I think there’s too much of a mixture of both good and bad news

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