Despite mixed economic data, ongoing tensions between the U.S. and China, and racial turmoil on American streets, markets continued to rally Wednesday. The TSX rose 1.17% and the Dow climbed 2.05%, returning to levels last seen on March 5.
As the Bank of Canada changes governors, the central bank held its benchmark lending rate at 0.25% and remarked that the impact of Covid-19 on the world economy “appears to have peaked.” Further, home sales in Toronto between April and May jumped 55% and 34% in Vancouver. (For perspective, Toronto home sales fell 53.7% YOY in May.) Real estate shot up 4% on the TSX, followed by financials, energy and industrials. There was green across many Canadian screens, but Canada Goose soared 17.51% in heavy trading by beating Q4 expectations. Banks like BMO (up 4.84%) enjoyed a strong Wednesday as did Brookfield Asset Management, spiking 6.17%.On Wall Street, Boeing soared nearly 13%, which helped propel to the Dow. Likewise, leisure stocks like Wynn Resorts jumped over 11% as they continue to regain lost ground from the pandemic. Zoom Video continues to skyrocket after reporting Q1 earnings. Zoom leapt 7.59%.
Though some worry about over-optimism, investors are clearly banking on the success of continue reopenings across the world.