Canada Stocks Regain 157 Points After Two Day Slump; Wells Fargo Says Equity Markets Have "Room To Run" in 2022

Last Updated: Monday, June 21, 2021 4:13 PM | MT Newswires

Canada's main stock market recovered much of the near 230 points lost in the prior two full trading sessions, with the Toronto Stock Exchange closing up near 157 points at 20,157 on Monday, near all time record closing highs, buoyed by higher commodity prices. But the Index closed about 60 points below session highs back above the 20,200 level hit in the afternoon, and below recent all time intraday highs.

Reflecting overall trade, among sectors Energy gained more than 2% and Materials rose 2.1%. Financials added about 0.75%.

And, perhaps, in reflecting investor enthusiasm -- sure, it relates to the U.S., but there being so many dual listed stocks and an increasing number of North American investors investing on both sides of the border, it will likely be of interest to Canadian stock watchers too -- Wells Fargo has said equity markets have "room to run" in 2022. In this week's Global Investment Strategy report, the Wells Fargo Investment Institute said: "We believe cyclical equity classes and sectors should continue to outperform if economic growth surges and monetary policy remains accommodative." And, it added: "We believe investors should continue to lean into U.S. Large Cap Equities, U.S. Small Cap Equities, and Emerging Market Equities while maintaining allocations to U.S. Mid Cap Equities at strategic target weights."

Of commodities, gold prices rose on Monday as the dollar weakened while bond yields edged higher. Gold for August delivery settled up $13.90 to US$1,782.90 per ounce in Comex trade.

Meanwhile, West Texas Intermediate crude oil ended at a fresh 32-month high on Monday as talks to return the United States to the Iran nuclear accord -- which could see Iranian exports return to the world market -- were suspended following the election of hardliner Ebrahim Raisi in Iran's presidential elections. WTI crude for July delivery settled up $2.02 to US$73.66 per barrel, Marketwatch reported. August Brent crude, the global benchmark, was last seen up $1.30 to US$74.81 while Western Canada Select was up $1.74 to US$59.84 per barrel.

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