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TSX rallies as oil jumps, banking crisis fears ease

Published 03/27/2023, 07:45 AM
Updated 03/27/2023, 04:44 PM
© Reuters. FILE PHOTO: The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019.   REUTERS/Chris Helgren/File Photo

By Fergal Smith

(Reuters) -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 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."

The Dow and S&P 500 also ended higher as a deal for Silicon Valley Bank's assets helped investor confidence in banks.

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.

© Reuters. FILE PHOTO: The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019.   REUTERS/Chris Helgren/File Photo

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%.

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