TSX hits record high as Celestica jumps, commodity prices rise
The S&P/TSX composite index (.GSPTSE), opens new tab ended up 134.46 points, or 0.5%, at 27,539.88, eclipsing Friday's record closing high.
"Optimism still seems to be pervading the market but we're entering the most interesting part of the week," said Michael Sprung, president at Sprung Investment Management.
The Federal Reserve and the Bank of Canada are due to make policy decisions on Wednesday, while a deadline for Canada to reach a trade deal with the U.S., or face a 35% tariff on its goods, is set for Friday.
The BoC is likely to keep its benchmark rate unchanged at 2.75% for the third straight meeting, economists and market analysts predict, as firm core inflation and robust job growth offset trade uncertainty.
U.S. ambassador to Canada Pete Hoekstra said he hoped a trade deal between Canada and the U.S. would be reached "very soon."
"I think the market has risen on euphoria and I don't know what it will take to break that euphoria, but I think at some point people are going to have to look hard at valuations and decide what intrinsic value really is and that could cause some setback going forward," Sprung said.
Technology (.SPTTTK), opens new tab rose 2.2%, with shares of Celestica (CLS.TO), opens new tab climbing 16.9% after the electronics firm reported stronger-than-expected second-quarter results.
Real estate (.GSPTTRE), opens new tab was up 1.7% as bond yields fell. The Canadian 10-year yield eased 4.5 basis points to 3.484%.
The materials group (.GSPTTMT), opens new tab, which includes metal mining shares, added 1.2% as the price of gold rose.
Energy (.SPTTEN), opens new tab also ended higher, rising 1%, as the price of oil settled up 3.8% at $69.21 a barrel. [O/R]
Air Canada (AC.TO), opens new tab was a drag, with its shares tumbling 12.3% after the company reported lower second-quarter profit.
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