Forex Traders are Happy as Canadian Stocks Rebound on U.S. Housing Data

Days of Low Performance

The renewed crisis in European economy and the poor performance of the U.S. in the economic market had far reaching cumulative effects on Canadian stocks. However, it seems that the situation has recovered to a significant extent and stocks in Canada have started to show good performance on positive market data. This better performance of the Canadian stocks has made forex traders happier than before and they are regaining their confidence in the market.

The Behavior of the Stocks

Canadian stocksAlmost all the major stocks in the Canadian market rose on positive U.S. housing data. The largest oil producer in Canada, Suncor Energy Inc. climbed by 3.3 percent to finish at C$28.41 while Cenovus Energy Inc. closed at C$29.44 after advancing 1.4 percent on the rise in the crude oil prices in New York. Gabriel Resources jumped 3.6 percent and New Gold added 3 percent to finish at C$1.44 and C$6.95 respectively. Teck Resources Ltd., the largest diversified miner in Canada rose to C$26.75 after climbing 2.3 percent. Both Bank of Nova Scotia and Bank of Montreal added 1.4 percent to close at C$57.70 and C$63.16 respectively. The Standard & Poor’s/TSX Composite Index in Toronto climbed 115.04 points to finish at 12,119.92 thus erasing its biggest loss in 2013.

U.S. Housing

The U.S. housing market has started to perform better than before. In fact, it is in a much better form than it was a couple of years ago. This points towards the fact that the U.S. economy is recovering slowly but surely. Experts opine that the housing market in U.S. is expected to get even better in future, provided no such sudden twist appears that can force the market flow in a different channel. But the fall in prices of crude oil and gold has some concern for traders as companies trading in these two things may pass through a little bit of upheavals, though nothing to be afraid of.

Forex traders are happy that the Canadian market has finally shown some healthy signs after weeks of poor performance. The potential of a better housing market in U.S. has underscored the reason for being delighted.

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