Is Canada’s stock market on the way up or heading south?

The TSX Composite’s surge on Monday gave its index its best back-to-back days since February, and a foundation for extending its bull run in Canada. TSX/SXE the top performing index the next day, which…

Is Canada’s stock market on the way up or heading south?

The TSX Composite’s surge on Monday gave its index its best back-to-back days since February, and a foundation for extending its bull run in Canada.

TSX/SXE the top performing index the next day, which only four days earlier was the worst performer, up a mere 0.09 percent.

Boeing Co. shares, for whom Canadian expansion was a magnet, were the biggest gainer, jumping 9.6 percent. Bombardier Inc. shares were 9.8 percent higher and up for the month, while Alcoa Corp. shares gained 8.9 percent.

The rising mood spread to the U.S. stock market, with the S&P 500 and Nasdaq Composite closing at record highs in afternoon trading.

The Dow Jones Industrial Average closed at the 26,083.94 point high it hit at the end of trading on Monday, the first time since January that the index was able to sustain a higher level.

The Dow has taken its cue from the benchmark S&P 500 index, which closed at an all-time high of 2,930.34.

Attention switched briefly from Washington’s government shutdown to growing concerns about the trade dispute between China and the U.S. and signals of support from former Fed chairman Alan Greenspan for President Donald Trump’s decision to withdraw troops from Syria and Afghanistan.

“It wasn’t a terrific week but as we come back from the long weekend it’s kind of back to normal trade and commodities. There is a lot of uncertainty out there. We are at the heart of an incredible story on the downside and there is a tremendous amount of optimism on the upside,” Tom Wallace, CEO of TDAmeritrade, said by phone.

The Wall Street Journal reported Tuesday that Trump was prepared to withdraw U.S. troops from Syria and Afghanistan.

He did not indicate when a decision would be made, the paper reported, but Trump’s comments on the WSJ report were seen as support for his decision to pull troops from Syria and an opening to meet with Kim Jong Un in Vietnam this week.

Economists warned that Trump’s announced troop withdrawals will result in higher costs, as global military involvement has escalated.

Global trade is unlikely to recover anytime soon.

Currency markets have had a tumultuous week: The Canadian dollar fell to a four-month low after Bank of Canada Governor Stephen Poloz indicated that future rate hikes will be slower because of the oil price slump.

The loonie, Canada’s currency and a popular barometer of global investor sentiment, now trades at $0.7574, below $0.7501, the low of the week, according to Refinitiv Eikon data.

The currency suffered after Poloz said Canadian inflation would likely run below the central bank’s 2 percent target for a third consecutive year amid plunging oil prices.

The loonie closed at $0.7543 to the dollar on Friday, having fallen to a low of $0.7532 on Monday, the lowest since March 26.

The Aussie has slipped to four-month lows, as continuing uncertainties over Britain’s possible exit from the European Union overshadowed a slightly improved economic outlook for Australia.

Australia’s central bank will probably keep interest rates on hold through 2019, according to a Reuters poll taken over the past week.

“This one will require much broader consensus. The weaker dollar is likely to make it difficult,” Erich Arispe, an FX strategist at Wells Fargo, said.

British pound was lifted by news that British companies are less fearful about Brexit, and Europe’s export-dependent manufacturing sector fared much better than expected.

The British pound traded 0.25 percent higher against the dollar at $1.3884.

Major indexes were to be closed Thursday for a national holiday. (Editing by Brian Thevenot)

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