Stocks rally after Irma, S&P 500 ends at record

At 10:26 a.m. ET (1426 GMT), the Toronto Stock Exchange’s S&P/TSX composite index rose 55.35 points, or 0.37 percent, to 15,040.67, rebounding after five straight sessions of losses.

Irma weakened shortly before it came ashore Sunday, and while the damage is still being assessed, insurers anticipate they won’t have to pay out as much in claims as it looked like they would last week.

The S&P 500 financial index jumped 1.74 per cent, with JPMorgan up 2.18 per cent and insurer Travelers up 2.34 per cent.

Prices for the benchmark 10-year Treasury note weakened, boosting yields to 2.11% from Friday’s 2.06%.

The United Nations Security Council unanimously stepped up sanctions against Pyongyang on Monday over the country’s sixth and most powerful nuclear test on September 3, imposing a ban on the country’s textile exports and capping imports of crude oil.

Financials may follow their USA peers higher after United States bond prices slipped Monday, sending yields higher. Still, nearly 7 million were without power and millions were displaced in what may go down as one of the worst storms in Florida’s history.

– Giant reinsurers like Swiss Re and Munich Re posted their biggest gains of the year.

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 Bloomberg Dollar Spot Index gained 0.5 percent for the first advance in more than a week.

The US Dollar climbed against the Japanese Yen, perceived by investors as a safe haven currency, after recording its largest weekly fall in two months.

The euro edged higher against the dollar at $1.1970 in early trades.

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%.

Eldorado shares faded 11 cents, or 4.1%, to $2.38.

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.

The German DAX jumped 1.4%, France’s CAC 40 index advanced 1.2% and the UK’s FTSE 100 added half a percent.

– Base metals rebound from their biggest drop in 9 months.

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