TSX, Wall Street rally after hurricane Irma damage less than expected

Marco Green
September 12, 2017

Meanwhile, North Korea celebrated its 69th anniversary without testing any missiles or nuclear bombs alleviating concern it would use the occasion to flaunt its fire power.

European markets also rallied on Monday, with insurers leading the charge as investors reassessed the economic impact of Hurricane Irma.

The 10-year U.S. Treasury note last fell 17/32 in price to yield 2.1201 percent, up from 2.061 percent late on Friday.

The UN Security Council voted unanimously Monday to step up sanctions against North Korea, having won the crucial support of Russian Federation and China, while the USA held out hope for a peaceful resolution to the crisis.

"The fear that the hurricane was going to be this massive disaster has receded".

The U.S. stocks rally was broad, with the ratio of S&P 500 shares that were rising relative to those that were falling at the highest in three months. By one estimate, damages will total $49 billion instead of an earlier prediction of $200 billion.

Meanwhile, Federal Reserve speakers are now in a blackout period before next week's policy meeting, so investors are likely to devote much of their attention to assessing the impact of natural disasters on USA growth.

- The Stoxx Europe 600 Index jumped 1 percent to the highest in a month.

MSCI's broadest index of Asia-Pacific shares outside Japan rose as much as 0.3 per cent to their highest in almost 10 years, drawing confidence from strong performances on Wall Street in the previous session.

The index of Indonesia's 45 most liquid stocks rose as much as 0.2 per cent.

In New York, the Dow Jones industrial average soared 259.58 points to 22,057.37.

The US dollar added 0.6% against its perceived safe-haven Japanese counterpart to 108.45 yen, moving away from a 10-month nadir of 107.32 yen touched on Friday. The closed 1.13% higher while the traded at 6432.26, up more than 1%.

All but one of the 12 TSX subgroups are up so far, with health-care advancing 1.2%, information technology ahead 1%, and financials climbing 0.7%.

USA inflation data due on Thursday is unlikely to show a significant pick-up in price pressures, with the August reading forecast at 1.6 percent on an annual basis versus 1.7 percent in July.

Shares of Travelers Companies, Progressive and American International Group rose 2.6 percent, 1.3 percent and 1.2 percent in the premarket, respectively.

Other reports by Click Lancashire

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