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TSX closes with a rise on the last day of a difficult year for the market



Canada's main stock index closed with growth along with US markets on the last trading day, which was a difficult year for stocks.

The S & P / TSX composite index closed at 100.86 points to 14,322.86 points at the end of December. But this was not enough to prevent significant losses in a year.

The index fell 12 percent in 2018 after the decline that began in the summer gained momentum, as trade disputes and a slowdown in global growth fueled fears of a recession.

Declines accelerated in December, causing the index to fall to 13,776.90 on Christmas Eve before conducting a modest rally in the last days of the year.

The fall, especially in the last month of the year, caught most market watchers by surprise.

“We all felt that the market was a little ahead of itself, or maybe in some cases, far ahead of itself,” said Allan Small, senior investment consultant at HollisWealth.

He said that the economy has slowed somewhat, but is still healthy, and he expects a slight correction in stocks rather than a major economic crisis.

“Many people talk about recession, but I don’t think the recession is somewhere in the short term. I think you have a bear market without a recession. ”

Investors, however, will have to get used to the recent instability, as a major trade dispute with China in the new year is coming to a deadline, and the Democrats seize the US House of Representatives.

“I think it's just a little more worried about the bank,” said Small.

Investors received positive sentiment after US President Donald Trump tweeted that he had a positive discussion with Chinese President Xi Jinping, Small said.

“President Trump tweeted on weekends that he spoke with the president of China, everything seems positive, on his twitter, he seemed optimistic that they were working on some kind of trade agreement.”

The news helped raise the Dow Jones Industrial Average by 265.06 points to 23 327.46. The S & P 500 index rose 21.11 points higher to 2.506.85, while the Nasdaq index rose 50.76 points to 6,635.28.

US stocks still closed in a year, showing the worst results in a decade. The S & P 500 dropped 6.2%, and the Dow dropped 5.6%.

The Canadian dollar averaged 73.30 US cents, which is 0.02 US cents lower than Friday.

The February contract for oil went up by eight cents to $ 45.41 a barrel, and the February contract for natural gas fell by 36 cents to $ 2.94 per million Btu.

The February contract for gold fell $ 1.70 to $ 1,281.30 an ounce, and the March contract for copper fell 5 cents to $ 2.63 per pound.


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