North American markets were mostly higher early Monday after overseas markets rallied ahead of an expected cut in U.S. interest rates this week.
The Toronto Stock Exchange’s main index, the S&P/TSX composite index, was up 67.25 points, or 0.22 per cent, to 8,582.70 - following a strong finish on Friday - as oil prices and the Canadian dollar advanced.
The loonie was trading at around 81.37 cents US early Monday, up from its previous close of 79.92 cents US.
Meanwhile, the price of oil rose Monday on expectations that OPEC will cut production when oil ministers meet Wednesday in Algeria. Crude futures were trading around $49.32 US a barrel, up from Friday’s close of $46.28 US.
On Sunday, OPEC’s Secretary-General Abdalla El-Badri said his group needs to make a "sizable" production cut, while Iran’s Oil Minister Gholam Hossein Nozar is reportedly pushing for a cut of between 1.5 million to two million barrels a day.
In the U.S., the Dow Jones industrial average was up 14.50 points, or 0.17 per cent, to 8,644.18, while the Nasdaq composite index was down 4.95 points, or 0.22 per cent, to 1,535.77. The U.S. Federal Reserve is widely expected to announce a cut in its key interest rates to near zero on Tuesday.
Overseas markets were higher Monday. London’s FTSE 100 index was up 37.04 points, or 0.87 per cent, to 4.315.42 at midday. In Frankfurt, the DAX rose 76.97, or 1.65 per cent, to 4,315.42 and the Paris CAC was up 30.20 points, or 0.94 per cent, to 3,243.95.
In Asia, Toyko’s stock average closed up 428.799 points, or 5.2 per cent, to 8,664.66 while Hong Kong’s finished up 288.56, or 1.96 per cent, to 15,046.95.
On Friday, North American markets ended in positive territory after rebounding from earlier losses. The S&P/TSX closed up 123.55 points, or 1.47 per cent, to 8,515.45. The Dow ended up 64.59 points, or 0.75 per cent, to 8,629.68 and the Nasdaq closed 32.84 points, or 2.18 per cent, higher to 1,540.72.
