It’s been a bounce-back week so far for North American markets as fears over the severity of the Omicron variant have subsided a bit as more data becomes available.
U.S. stock indexes were up sharply to start the week, with entertainment and travel stocks leading the charge. Energy shares also jumped, with oil prices rising on expectations for higher energy demand as lockdown fears decreased. Brent crude rose 4.6%, the largest one-day gain in more than three months. That was good news for the TSX, which added 228 points, while the Dow jumped 647 points. The S&P and Nasdaq also posted solid gains.
The rebound continued Tuesday, with all four major North American markets again posting strong gains. Meanwhile, the loonie strengthened to an 11-day high against the greenback on Tuesday as oil prices continued climbing. In economic news, Canada posted a $2.1-billion trade surplus in October, with imports and exports both hitting record levels, according to Statistics Canada.
As expected, the Bank of Canada on Wednesday kept its overnight rate unchanged at 0.25% and repeated its expectations to raise rates in the second or third quarter of 2022. U.S. markets posted slight gains Wednesday, while the TSX fell 85 points, after two solid days in the green.
On Thursday, the U.S. Labor Department reported that weekly jobless claims dropped to 184,000, the lowest level in more than five decades. Despite the strong numbers, U.S. markets were mixed, with S&P 500 and Nasdaq posting modest losses, while the Dow was flat. In Canada, the TSX lost 152 points, weighed down by the energy and materials sectors.
Finally, China’s largest property developer, China Evergrande Group, failed to make key bond payments this week, setting the stage for what could be one of the country’s largest-ever debt restructurings.
Markets Regain Lost Ground
For the four trading days covered in this report, the Dow climbed 1,175 points to close at 35,755, the S&P 500 rose 129 points to settle at 4,667, while the tech-heavy Nasdaq added 432 points to close at 15,517. In Canada, the TSX gained 292 points to end at 20,925.
source https://richarddri.ca/north-american-markets-post-solid-gains-as-lockdown-fears-decrease/
Dri Financial Group 