Bay Street Kicks Off New Year In Style, TSX Up 115 -- Canadian Commentary

(RTTNews) - Canadian stocks rallied Tuesday on the first trading day of the year, pushing Toronto's main index to its highest since 2015.

Investors were in a sunny mood after the holiday breaks, as economic data soothed fears of a global economic slowdown this winter.

The S&P/TSX Composite Index jumped 115.44 points, or 0.76, to 15,403.03, led by strong gains in the gold and financial sectors.

Chinese factory activity data pointed to stabilization in the economy and a gauge of U.K. manufacturing hit a 30-month high in December.

In the U.S., the Institute for Supply Management showing that growth in manufacturing activity accelerated by more than anticipated in December.

The pace of growth in the Canadian manufacturing sector picked up slightly in December. The Markit Canada Manufacturing Purchasing Managers' index (PMI), a measure of manufacturing business conditions, rose to a seasonally adjusted 51.8 last month from 51.5 in November

Energy stocks rose despite a significant drop in crude oil prices. Markets are conflicted about whether OPEC production cuts will re-balance the oil markets.

OPEC and Russia agreed to output quotas for 2017, but analysts say increased production from the US and Canada may lead to a prolonged supply glut.

Feb. WTI oil dropped $1.39, or 2.6%, to settle at $52.33/bbl after rising to $55.24.