Canadian Stocks Close Modestly Higher As Early Rally Fades

(RTTNews) - Canadian stocks showed a strong move to the upside in early trading on Monday but gave back ground over the course of the session.

After reaching an early high of 20,373.97, the benchmark S&P/TSX Composite Index ended the day up just 40.94 points or 0.2 percent at 20,260.13.

The early strength came as traders continued to pick up stocks at reduced levels, with the S&P/TSX Composite Index continuing to regain ground after briefly dipping below 20,000 last Friday.

Buying interest waned over the course of the session, however, as traders continue to express concerns about the outlook for U.S. interest rates.

Recent economic data has led to worries the Federal Reserve will raise rates more than currently anticipated and hold rates at an elevated level for an extended period.

The higher close on the day partly reflected strength among materials stocks, with the S&P/TSX Capped Materials Index climbing by 1.3 percent.

Consumer discretionary and industrial stocks also saw some strength on the day, while healthcare and consumer staples stocks moved notably lower.