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Bank Stocks Help Lift the Canadian Market to Begin the Week

Canada’s three largest banks by market cap had the most significant role, combined, in today’s 92.5 point gain (+0.8%) for the S&P/TSX Composite (TSX:^OSPTX).

TD Bank (TSX:TD), Royal Bank (TSX:RY), and Bank of Nova Scotia (TSX:BNS) were up 1.2%, 1.0%, and 1.0% respectively, shrugging off the negative article that appeared in this weekend’s Globe.  These three banks combined for 15 basis points (bps) of today’s 80 bps move.

A collection of resource companies also made their mark on Monday’s market.  Barrick Gold (TSX:ABX) climbed 3.7% as the spot price of gold continued to rebound, finishing up more than $9.00 to close at US$1,471.04/oz.

In addition, Potash Corp. (TSX:POT) continued the momentum that began last week after the company announced quarterly results.  Potash shares finished Monday +1.8%, closing at $42.13.  Potash shares have increased by 7% since last Tuesday’s opening.

Foolish Takeaway

Earnings are likely to dictate how the Canadian market rolls over the next few weeks.  Although today was light on this front, tomorrow is a different story with four prominent large caps on deck.

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Fool contributor Iain Butler is short $40 July 2013 put options on Potash and owns shares in Potash and Barrick Gold outright.  The Motley Fool does not own shares in any of the companies mentioned.     

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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