Photo: Contributed

TORONTO — North American stock markets set new three-month highs as investors again shrugged off risks as they gained more confidence about the economic recovery.

“Markets have been unstoppable even in the wake of renewed U.S.-China frictions, civil unrest out of the U.S. and the risk of a second wave of infections as the economy reopens,” said Candice Bangsund, portfolio manager for Fiera Capital.

The resilience is built on hopes for a rapid economic recovery while supported by a flood of monetary and fiscal support, she said.

Global equity markets rose for an eighth straight day.

“You could say that investors are erring on the side of complacency,” she said.

The rally was spurred on Wednesday by supportive economic data in China, Europe and the U.S.

Overseas survey data revealed that these economies are slowly emerging from the COVID downturn and are on the path to recovery, she said.

In the U.S., ADP reported that private payrolls fell by another 2.76 million in May but that was far less than the 8.75 million estimated by analysts. In addition, data from the Institute for Supply Management indicated that the services sector contracted less than expected by rebounding from an 11-year low.

“So I guess it’s a case of data that’s coming in less pessimistic than forecasts were calling for,” Bangsund said.

The S&P/TSX composite index closed up 180.75 points at 15,575.11 after hitting an intraday high of 15,605.33. The market is about 13% below its February high.

In New York, the Dow Jones industrial average was up 527.24 points at 26,269.89. The S&P 500 index was up 42.05 points at 3,122,87, while the Nasdaq composite was up 74.54 points at 9,682.91. Nasdaq is less than 1.6 per cent off its high.

The Canadian dollar traded for 74.05 cents US compared with 73.99 cents US on Tuesday.