Newspaper article The Canadian Press

TSX Closes at Six-Week High on Renewed Trade Hopes and Lower Recession Fears

Newspaper article The Canadian Press

TSX Closes at Six-Week High on Renewed Trade Hopes and Lower Recession Fears

Article excerpt

North American stock markets surge, gold falls

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TORONTO - Canada's main stock index closed at its highest level in six weeks on renewed hopes of a U.S.-China trade deal and diminished fears of a recession.

The S&P/TSX composite index gained 125.97 points to close at 16,574.81, its highest close since July 24 and less than 100 points off its record high.

U.S. markets also surged, outpacing the Toronto market because technology companies had a strong day after the world's two largest economies announced they would meet again next month in Washington, D.C.

"So investors are welcoming this reprieve today and risk assets are rallying broadly across both global equity markets but also commodities prices," said Candice Bangsund, portfolio manager for Fiera Capital.

Markets have rallied before only to have hopes dashed by a tweet.

It's encouraging that the two sides are continuing to talk and seem willing to come to a deal despite imposing increased tariffs last weekend, she said.

"The fact that they are getting together face-to-face, that has sparked speculation that there could be some sort of deal and obviously that's come as a relief for investors," Bangsund said in an interview.

"Our sense is that a deal will be done by year-end and this is a step in the right direction."

The positive trade sentiment followed a de-escalation in political instability in Hong Kong and in London as lawmakers moved to block a no-deal Brexit.

Strong U.S. economic also diminished fears of a recession.

Private payrolls increased by 195,000, exceeding expectations, ahead of Friday's monthly non-farm payrolls report. The U.S. services industry also had its fastest expansion last month since February, according to the Institute for Supply Management's non-manufacturing purchasing managers index (PMI).

"The numbers that we saw today really reinforced the fact that the U. …

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