TSX Shrugs Off Volatile Morning Session, Ends Modestly Higher

(RTTNews) - After swinging between gains and losses till noon, the Canadian stock market stayed positive till the end of the session on Monday to eventually close on a firm note.

Reports showing a surge in coronavirus cases in several states across America, and in many other countries over the weekend, weighed on sentiment. However, with recent strong retail sales and employment data from the U.S. raising hopes about economic recovery, stocks began moving higher post noon.

According to the World Health Organization (WHO), more than 183,000 new coronavirus infections were reported globally on Sunday, the biggest single-day increase since the outbreak began.

Brazil has become a major coronavirus hotspot in recent weeks and led the spike in new infections with 54,771 new cases. The U.S. was next with 36,617 new cases as states in the South, West and Midwest see surges in new infections following recent reopening.

Materials shares posted strong gains thanks to higher gold prices. Information technology shares were the other prominent gainers. Consumer staples stocks declined sharply. Financial, energy and industrial shares turned in a mixed performance.

The benchmark S&P/TSX Composite Index ended up 42.70 points or 0.28% at 15,516.90, after scaling a low of 15,427.33 and a high of 15,537.69 intraday.

Barrick Gold Corporation (ABX.TO), Franco-Nevada Corporation (FNV.TO) and Agnico Eagle Mines (AEM.TO) gained 3.2 to 3.6%, on strong volumes. Shopify Inc. (SHOP.TO) and Restaurant Brands International (QSR.TO) gained 1.7% and 1.6%, respectively.

Among other gainers, Real Matters (REAL.TO), Pan American Silver Corp (PAAS.TO), SSR Mining (SSRM.TO), Aura Minerals (ORA.TO) and Endeavour Mining (EDV.TO) gained 4.8 to 6%.

Canadian Pacific Railway (CP.TO), Rogers Communications (RCI.B.TO), BCE Inc. (BCE.TO) and Bank of Montreal (BMO.TO) declined 1 to 1.25%.

U.S. stocks closed higher after exhibiting weakness early on in the session. The Dow climbed 0.6% and the S&P 500 advanced 0.7%. The Nasdaq jumped 1.1% to record a new closing high.

Optimism the U.S. economy will quickly recover from the coronavirus-induced setback lifted stock prices on Wall Street.

Stock markets across the Asia-Pacific region ended flat to slightly lower on Monday, while the major European markets closed weak.

In commodities, the new front-month WTI Contracts for August settled higher by $0.90 or 2.3% at $40.73 a barrel.

Gold futures for August ended up $13.40 or about 0.8% at $1,766.40 an ounce.

On Friday, gold futures for August ended up $21.90 or about 1.3% at 1,753.00 an ounce.

Silver futures for July edged up by about 0.3% to $17.902 an ounce, while Copper futures for July moved up 1.6% to $2.6525 per pound.