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TSX Recovers After Weak Start, Ends On Firm Note

After a weak start and a subsequent smart recovery, the Canadian stock market was a bit choppy till the penultimate hour, but rallied sharply thereafter thanks to strong buying in financial and industrial sections.

Stocks from information technology sectors too posted strong gains. Materials, consumer staples and energy stocks found some support.

The benchmark S&P/TSX Composite Index, which slipped to a low of 15,178.35 in early trades, rose to 15,450.98 later in the day and finally settled at 15,446.14, gaining 151.76 points or 0.99%.

Stocks rallied in the final hour, reacting to news the U.S. regulators plan to ease banking regulations, including allowing banks to more easily make investments in riskier funds such as venture capital funds.

Among information technology stocks, Lightspeed Pos (LSPD.TO) rallied 3.6%, Exfo Inc. (EXF.TO), CGI Group (GIB.A.TO) and Shopify Inc. (SHOP.TO) moved up 2.5 to 2.8%, and Sierra Wireless (SIW.TO) gained nearly 2%.

Constellation Software (CSU.TO), Open Text Corp (OTEX.TO), Enghouse Systems (ENGH.TO) and Kinaxis Inc. (KXS.TO) also ended notably higher.

From the industrial space, Ballard Power Systems (BLDP.TO) gained 3.3%, Waste Connections (WCN.TO) and Canadian Pacific Railway (CP.TO) gained 2.3% and 2.1%, respectively, while Canadian National Railway (CNR.TO), SNC-Lavalin (SNC.TO), Toromont Industries (TIH.TO), Cargojet (CJT.TO) and Finning International (FTT.TO) moved up 1.5 to 1.85%.

Among financial stocks, Onex Corp (ONEX.TO) spurted 3.3% and Manulife Financial (MFC.TO) gained 1.8%, while Laurentian Bank (LB.TO), Royal Bank of Canada (RY.TO), Sun Life Financial (SLF.TO) and Toronto-Dominion Bank (TD.TO) gained 1 to 1.6%.

Among other gainers, Pembina Pipeline Corporation (PPL.TO) moved up 2.5%. Enbridge (ENB.TO), Canadian Natural Resources (CNQ.TO) and BCE Inc. (BCE.TO) ended higher by 0.7 to 1%.

BlackBerry Ltd. (BB.TO) shares ended lower by 1.2%. The company reported a net loss of US$636 million or US$1.14 per share for the first quarter ended May 31. That included a $594-million goodwill impairment primarily related to its BlackBerry Spark reporting unit, which provides tailored cybersecurity options for enterprises.

Norbord Inc. (OSB.TO), B2Gold Corp (BTO.TO), Bombardier Inc. (BBD.B.TO), BRP Inc. (DOO.TO) and Fairfax Financial Holdings (FFH.TO) also closed weak.

On the economic front, average weekly wages in Canada increased 9.1% in April of 2020 over the same month in the previous year. In March, weekly average earnings had increased by a downwardly revised 3.2%.

U.S. stocks ended on a bright note thanks to hectic buying in the final hour of trading. The Dow gained 1.2%, while the Nasdaq and the S&P 500 both surged up 1.1%.

Financial stocks moved higher amid news U.S. regulators plan to ease banking regulations, including allowing banks to more easily make investments in riskier funds such as venture capital funds.

The major European markets ended on a firm note, while markets across the Asia-Pacific region moved mostly lower.

In commodities, West Texas Intermediate crude oil futures for August ended up $0.71 or 1.9% at $38.72 a barrel.

Gold futures for August ended down $4.50 or about 0.3% at $1,770.60 an ounce, after moving between $1,764.10 and $1,779.60 an ounce.

Silver futures for July gained $0.225 to settle at $17.895 an ounce, while Copper futures for July settled higher by $0.0125 at $2.6630 per pound.

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