Canada’s main stock index rose on Monday, helped by gains for energy and financial shares, as oil prices surged and investors grew hopeful that recent turmoil in the global banking sector could be contained.
The Toronto Stock Exchange’s S&P/TSX composite index ended up 123.25 points, or 0.6%, at 19,624.74.
Equity markets globally got a lift after First Citizens BancShares Inc. said it would purchase the loans and deposits of failed Silicon Valley Bank, calming investor angst about the global financial system.
“It’s a broad-based gain for North American equity markets based on fears of the banking crisis easing a little bit,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.
Authorities have learned from some prior crises “that they need to act decisively and quickly on things,” Cieszynski added. “As long as nothing new pops up we might see confidence start to improve.”
Financials, the most heavily weighted sector on the TSX, added 0.7%, while energy was up 2.2% as oil futures settled 5.1% higher at $72.81 a barrel.
The materials sector dipped 0.1% as gold gave back some of its recent gains.
The TSX is on track to end lower for a second straight month in March but remains in positive territory since the start of the year, gaining 1.2%.
The Dow and S&P 500 also ended higher as a deal for Silicon Valley Bank’s assets helped investor confidence in banks, though a decline in technology-related stocks limited the day’s gains.
The S&P 500 banks index rose 3.1%, while the KBW regional banking index ended up 0.6%.
JPMorgan Chase & Co shares climbed 2.9% and Bank of America added 5%. They were among stocks giving the S&P 500 its biggest boost on Monday.
Shares of First Citizens BancShares Inc shot up more than 50% after it said it would acquire the deposits and loans of Silicon Valley Bank.
Also, shares of First Republic Bank were up 11.8% after Bloomberg reported U.S. authorities were considering more support for banks, which could give the struggling First Republic more time to shore up its balance sheet.
“There’s still a lot going on in the financial sector, and it’s actually good news today,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
But tech and growth stocks have “had a very strong quarter, so there may be some profit-taking as we head into the end of the quarter.”
The Dow Jones Industrial Average rose 194.55 points, or 0.6%, to 32,432.08, the S&P 500 gained 6.54 points, or 0.16%, to 3,977.53 and the Nasdaq Composite dropped 55.12 points, or 0.47%, to 11,768.84.
Shares of Apple were down 1.2%. The S&P 500 technology index is up more than 16% for the quarter so far.
Crypto shares were also down Monday after the Commodity Futures Trading Commission said crypto exchange Binance and its CEO and founder Changpeng Zhao have been sued by the CFTC for operating an “illegal” exchange and a “sham” compliance program.
Among other stock gainers, Walt Disney shares ended up 1.6% after the company began 7,000 in layoffs announced earlier this year.
Bond yields jumped Monday in their latest lunge. The yield on the U.S. 10-year Treasury rose to 3.53% from 3.37% late Friday. It was above 4% earlier this month.
Reuters, Globe staff
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.