Energy Stocks Leading The Canadian Market Higher
(RTTNews) - Following the pullback seen last Friday, Canadian stocks have moved back to the upside during the trading session on Monday.
The benchmark S&P/TSX Composite Index remains firmly positive after an initial advance and is currently up 85.84 points or 0.5 percent at 16,603.69.
The initial strength came after the U.S. Food and Drug Administration announced Sunday that it has issued an emergency use authorization for investigational convalescent plasma for the treatment of COVID-19 in hospitalized patients.
The FDA concluded convalescent plasma may be effective in treating COVID-19 and that the known and potential benefits of the product outweigh the known and potential risks.
Adding to the positive sentiment, a report from the Financial Times said the Trump administration is considering fast-tracking an experimental coronavirus vaccine from the U.K. for use in America ahead of the presidential election.
Energy stocks have helped to lead the way higher amid optimism about the outlook for demand, with the S&P/TSX Capped Energy Index spiking by 3.6 percent.
The rally by energy stocks also comes amid a modest increase by the price of crude oil, as crude for September delivery is rising $0.18 to $42.52 a barrel.
Significant strength has also emerged among financial stocks, driving the S&P/TSX Capped Financial Index up by 1.5 percent.
Consumer discretionary stocks are also seeing considerable strength, while some weakness is visible among technology stocks.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.