TORONTO (Reuters) - Canada’s benchmark stock index rose the most in nearly three weeks on Monday, led by banks and energy as oil rose and the FBI cleared U.S. Democratic presidential candidate Hillary Clinton of wrongdoing over emails just ahead of Tuesday’s election.
An uncertain U.S. political environment and recent losses for oil weighed on the index last week, when it fell 1.9 percent, the most since February.
“The markets were definitely oversold. It is just one of these things where the pendulum swung too far in the one direction and now it is coming back,” said John Kinsey, portfolio manager at Caldwell Securities.
Nine of the index’s 10 main groups were in positive territory, although the materials sector, which includes precious and base metals miners and fertilizer companies, falling 1.4 percent.
Gold miners weighed heavily as bullion retreated on the news about Clinton, which is seen helping her in a tight race for the White House against Republican nominee Donald Trump. [GOL/]
Clinton is viewed by markets as a status quo candidate with more predictable policies than her Republican rival Donald Trump, a political novice. News favoring Clinton’s presidential bid generally boosts global risk appetite.
The final results will be known on Wednesday.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 143.20 points, or 0.99 percent, at 14,652.45.
Other influential gainers on the index included Suncor Energy Inc (SU.TO), which rose 2.5 percent to C$40.10, and Canadian Natural Resources Ltd (CNQ.TO), which advanced 1.3 percent to C$40.64. The energy group climbed 1.8 percent.
U.S. crude oil futures CLc1 settled 82 cents higher at $44.89 a barrel, supported by a rebound in other asset classes, but gains were capped by a rallying dollar and doubts over OPEC’s planned production cuts. [O/R]
Magna International Inc (MG.TO) gained 1.5 percent to C$53.01 after reaching a new tentative agreement with a union at one of the auto parts maker’s plants after a short strike.
Air Canada (AC.TO) jumped 7.5 percent to C$12.83 after the country’s largest airline reported a better-than-expected quarterly profit and forecast lower costs for the current quarter.
Spot gold XAU= tumbled 1.8 percent, pressuring gold miners. [GOL/]
Additional reporting by Alastair Sharp; Editing by James Dalgleish