TSX Set for Gains As North Korean Tensions Ease

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The US Dollar Index, which gauges the greenback's strength versus major rivals, is now at 93.775.DXY, a gain of 0.35%.

US stocks climbed sharply on Monday as Wall Street's fears about the North Korea nuclear crisis faded. USA officials also played down the likelihood of a nuclear conflict with North Korea.

In currencies, the United States dollar rose 1 percent against the Swiss franc, erasing much of the greenback's losses last week against the safe-haven currency, which was set for its biggest 1-day drop against the dollar since July. That included the S&P 500 logging its best one-day gain since April at 1%.

It measures the daily stock price movements of 30 large, publicly-owned US companies.

Markets will shrug off events such as the North Korea tensions so long as interest rates continue to stay low, the labor market stays strong and the global economy stays healthy, said Dan Miller, director of equities at GW&K Investment Management.

Markets are now pricing in a very slim chance of the escalation of war between the United States and North Korea. Sompo Holdings rose 2.2 percent, Mitsubishi UFJ Financial Group rose 1.7 percent and Mizuho Financial Group added 1.4 percent. Toronto-Dominion Bank (TD.TO) rose 0.5 per cent to $64.36.

Shares of companies mining gold retreated after the price of the metal declined as North Korea signaled it would delay a decision on firing missiles towards Guam, a USA territory in the Pacific.

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The S&P 500 posted 49 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 98 new highs and 85 new lows.

The broader Topix shed 0.8 percent to 1,603.95.

Meanwhile, shares of Ansell tumbled 2.88 percent after the rubber products manufacturer announced full-year profit fell 7.2 percent and missed estimates, Reuters reported.

Crude oil sunk more than 2.5 percent with prices at $47.50 per barrel.

USA government data is forecast to show crude stockpiles extended declines during a period of strong seasonal demand, trimming a glut.

Spot gold prices fell 0.5 percent to $1,275.62 an ounce, extending their fall from Monday when they shed half a percent.

The dollar rose as traders unwound their bearish bets made last week after Friday's disappointing USA inflation data dampened expectations that the Federal Reserve would raise interest rates again this year.

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