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Dow sparks Americas rally
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July 14, 1998: 6:19 p.m. ET
Toronto ends losing streak while Brazil, Venezuela jump more than 2 percent
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NEW YORK (CNNfn) - Major stock markets in the Western Hemisphere ended stronger on Tuesday, boosted by encouraging signs of recovery in troubled overseas markets and a rally on Wall Street.
The Toronto Stock Exchange's key 300 Composite Index rose 38.16 points or 0.52 percent to 7,387.10. Volume was steady at 99 million shares worth C$2 billion.
In New York, the Dow Jones industrial average ended up 149.33 points or 1.64 percent to 9,245.54, a record close.
Andrew McCreath, a portfolio manager at Synergy Mutual Funds in Toronto, said the market -- which slumped by 40.78 points or 0.55 percent to 7,348.94 on Monday - also received a push from expectations of strong second-quarter corporate earnings.
"The overseas markets have all been strong. Clearly they like what's going on in Asia and secondly some decent (earnings) numbers have been coming out," he said. "There's a lot of companies reporting in the next day or so. The good numbers are clearly driving the market. Everything is positive at this point in time."
In early trading, nine of the TSE 300's 14 subindices opened higher led by a 0.90 percent rise in the gold and precious minerals index.
Metals and minerals and utilities stocks were also higher.
Elsewhere in Canada, the Montreal Portfolio index also surged, gaining 28.01 points, 0.75 percent, to 3,750.44, pushed higher by newfound strength in the banking sector - up 87.16 points or 1.16 percent - and utilities.
The Mexican bourse notched up solid gains as prospects of healthy second quarter earnings and Wall Street's record session brought buyers into the market.
"The market began to react last week on the outlook for earnings," said Hector Jimenez, research head at Inverlat brokerage. "The Dow (Jones) rally has helped this to an extent."
The 35-stock IPC share index closed up 40.14 points, 0.87 percent, at 4,665.79.
Jimenez said stability on Russian and Japanese markets "have been reinforcing (local) markets, but the bourse is basically moving ahead of earnings."
Mexican companies are required to report results to the Mexican stock exchange before the end of the month.
Brazil shares extended their rally from the previous session, bolstered by strong overseas markets overseas and following in particular in the wake of a multi-billion dollar international aid package for Russia, brokers said.
"The good news from Russia helped investors look at Brazil as a strong possibility for investment among other emerging markets," said a trader at a local brokerage.
The Bovespa index of the 52 most actively-traded stocks closed up 2.13 percent at 10,642 points. Market volume was a higher-than-expected $689 million reals ($592.6 million), prompted by an influx of overseas funds.
Caracas stocks ended higher on Tuesday, buoyed by stronger oil prices, a rising Dow and a Central Bank ruling that reduced the possibility of a devaluation this year, traders said.
According to preliminary figures from the exchange, the bolsa's 15-stock IBC index finished up 105.97 points, 2.26 percent, at 4,784.72.
Earlier, the Central Bank cut the proportion of a bank's equity that can be held in non-Venezuelan currency to 15 percent from 25 percent. Traders said the measure was clearly intended to reduce currency speculation.
The Central Bank has spent about $3 billion -- 17 percent of its currency reserves -- this year defending the overvalued bolivar.
"The ruling will also force banks to unwind some of their dollar positions," Econoinvest broker Emilio Antelo said.
Wall Street's rally, combined with a rise in the price of benchmark August Brent crude - oil dominates the Venezuelan economy - also helped boost sentiment in the stock market.
Trade volume rose to 2.2 billion bolivars ($4 million) as 35 million shares changed hands. Among traded issues, nine rose, four fell and 16 closed unchanged. 
-- from staff and wire reports
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