Equity markets rebound strongly, leaving Wall Street and Europe in the dust

Equity markets made a sharp turnaround from Friday’s decline, with the Toronto Stock Exchange rising almost 1.5 percent on the first day of trading of the month and Wall Street joining in the trend.

The S&P/TSX composite index rose by 128.5 points, or 0.93 percent, to 16,386.53.

Its movement was echoed in other indexes. Europe’s broad FTSEurofirst 300 index rose 1.9 percent, while the Dow Jones Industrial Average advanced 1.46 percent and the S&P 500 rose 1.36 percent.

Even some currencies showed a sustained buying interest.

The U.S. dollar weakened against the euro as Germany’s data showed a broad-based improvement in the nation’s economy. Economists had been concerned that the recession in Turkey and the sanctions placed by the United States on Iran would result in trade hostilities with European nations, but the news from Germany was seen as relieving pressure on the euro.

Meanwhile, oil prices continued to push higher, with crude at $67.30 a barrel. “The global economic expansion remains on track despite turmoil in Turkey and Iran and amid ongoing trade tensions,” Jasper Lawler, head of research at London Capital Group, said in a note.

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