The Conversation (0)
After sinking to an eight-month low in October, the main stock index on the TSX rose to a seven-week high on Tuesday, with nine of 10 sectors on the index recording gains. According to The Globe and Mail, the index has actually gained for five weeks in a row. That’s the longest streak of weekly gains since March.
As CTV News reported, the strong performance for Canadian stocks came as recent economic data suggested that Germany’s economy is stabilizing. The report was a welcome change from previous economic data that indicated Germany could be headed for a recession.
Meanwhile, Reuters states that Japanese Prime Minister Shinzo Abe has announced that he will delay a 10-percent rise in his country’s sales tax, quelling worries that bringing in the higher tax could weaken the Japanese economy.
Going up
The S&P/TSX Composite index (INDEXTSI:OSPTX) increased 83.02 points to 14,965.52 points on Tuesday, a 0.56-percent gain from the previous session. Also, the benchmark TSX was almost 10 percent higher than eight-month lows hit in October.
News outlets reported on Monday that Canadian stocks were slated to reach a seven-week high, and it was certainly encouraging to see them hit the mark. According to The Globe and Mail, the index has actually gained for five weeks in a row. That’s the longest streak of weekly gains since March.
Colin Cieszynski, chief market strategist at CMC Markets, told Reuters, “[w]e’re seeing a nice rebound for Canadian stocks here … Things are looking up for the TSX. We are in a seasonally favorable period for stocks, and it’s also a seasonally favorable period for some of the key markets underlying the TSX.”
Good news for gold?
Furthermore, despite recent negative sentiment in the gold space, the gold sector was up roughly 3 percent, while gold for December delivery approached $1,200, hitting $1,194.70 per ounce during Tuesday trading hours.
Gold companies that saw gains include Continental Gold (TSX:CNL), which was up just under 17 percent as of 12:53 p.m. EST, at $2.65, and Seabridge Gold (TSX:SEA), which rose 10 percent to trade at $9.11. Barrick Gold (TSX:ABX,NYSE:ABX) was up just over 5 percent, at $14.82.
With gold lagging of late, investors are no doubt looking positively on today’s headlines, and many will be watching for further positive news in the market.
Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.