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The Toronto Stock Exchange hit a one-week high early in the day on Tuesday, bolstered by gains in energy shares as concerns around the Omicron coronavirus variant eased. The index was up 1.59 per cent at 1:10 pm EST, keeping up its as the day progressed.

Worries about the impact of the Omicron variant are beginning to subside, leading to a second day of rising oil prices. Rising prices have encouraged the Toronto-listed energy sector as it climbed 2.9 per cent.

“While there is probably going to be some demand destruction because of omicron, the market priced in a lot worse than what it’s going to be,” Phil Flynn, senior market analyst at Price Futures Group, said in an interview with Bloomberg.

Also adding to gains today were technology stocks, up 2.7 per cent, following the lead of gains in the U.S. tech-heavy Nasdaq index.

The TSX Venture Composite Index is also up by 2.34 per cent today to 918.68 as of 2:13 pm EST, while the CSE Composite is up 4.29 points to 524.32.

With the holidays and the end of the year quickly approaching, stock indices are being boosted by what Irwin Michael of ABC Funds called a “Santa Claus Rally.”

“I see some of that taking place now as we hit the end of the year and investors who were heavy in cash, or who missed the market might feel compelled to invest money,” Mr. Michaels, a portfolio manager, told Reuters.

Canadian consumers are also expected to spend more this holiday season, according to Deloitte Canada’s 2021 Holiday Retail Outlook. The Toronto Star reported that experts expect a 31 per cent increase in seasonal spending compared to last year as Canadians look forward to a lockdown-free holiday season spent with family and friends.

Market movers

Today’s top trending stocks include mining companies Appia Rare Earths (CSE:API), up 27.84 per cent on the day, Pacific Ridge (TSXV:PEX), up 22.22 per cent, and Mistango River (CSE:MIS), up 20.00 per cent as of 2:13 pm EST.

Yesterday, Appia reported assay results from its drill program at the Alces Lake property, which confirmed some of the highest recorded rare earth grades discovered to date on the property in Saskatchewan.

Pacific Ridge has also seen gains since announcing assay results from its first three drill holes at the Kliyul Project in British Columbia, while Mistango River continues to advance its Phase 2 drill program at the Kirkland West Gold Project.

Meanwhile, several companies on the TSX Venture exchange are announcing financing rounds this week including Bitcoin Well, Pasofino Gold, Element 29, Kutcho Copper, and DGTL Holdings.

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