Canada's TSX gains more than 1% as financial shares climb

TORONTO — Canada’s main stock index rose on Monday, helped by gains for financial shares, as investors welcomed a stronger-than-expected rebound in German business morale.

* The recovery in Germany’s Ifo institute survey for May offered a glimpse of optimism to battered investors of what lay beyond weeks of economic lockdowns.

* The Toronto Stock Exchange’s S&P/TSX composite index closed up 161.78 points, or 1.1%, at 15,075.42. The index has rallied about 35% since hitting an eight-year low in March.

* The heavyweight financials group rose 1.7%, gaining ground ahead of earnings reports over the coming days from Canada’s major banks.

* The healthcare sector, which includes cannabis stocks, rose 4.9%, while information technology was up 2.1%.

* Shares of Transat AT Inc fell 7% as EU antitrust regulators opened a full-scale investigation into Air Canada’s bid for the Canadian tour operator.

* Financial markets in the United States were closed for the Memorial Day public holiday. (Reporting by Fergal Smith; editing by Grant McCool)