CANADA STOCKS-Mining stocks lift Toronto index, dismal U.S. data caps gains

  • 9/3/2021
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(Adds comments; updates prices) Sept 3 (Reuters) - Canadian equities inched higher on Friday as a rise in commodity prices lifted mining stocks, although gains on the main index were capped by a dismal U.S. jobs report that sparked fears of slowing global growth. The Toronto Stock Exchange’s S&P/TSX composite index was up 10.29 points, or 0.05%, at 20,805.41 after closing at a record high on Thursday. The commodity-linked mining sector surged 1.3% to a near one-month high, helped by higher bullion prices as investors sought the perceived safety of gold following a sharp slowdown in U.S. jobs growth that underscored a stunted post-pandemic economic recovery. Canadian equities have scaled record highs in recent weeks as investors shrugged off sluggish macroeconomic data, betting on central banks to stick to easy money policies. The U.S. jobs report on Friday calmed fears the Federal Reserve would announce a taper at its meeting later this month. “The Federal Reserve can afford to be patient and take their time with asset purchase tapering and signaling future interest rate increases,” said Brandon Michael, senior analyst at ABC Funds. “The technology sector should continue to be a major beneficiary of easy central bank policy and muted economic data, as the group is growth oriented and much less economically sensitive.” Canada’s technology index was flat by 09:45 a.m. ET, after posting strong gains in four of the past five sessions. Focus will also be on the Bank of Canada’s policy meeting next week, when it is due to make an interest rate decision. HIGHLIGHTS * Nexgen Energy Ltd jumped 7.6% after RBC Capital Markets raised its price target on the stock. * The most heavily traded shares by volume were Great-West Lifeco Inc, Suncor Energy and Bombardier . * Across Canadian issues, there were 51 new 52-week highs and three new lows, with total volume of 45.31 million shares. (Reporting by Amal S in Bengaluru; Editing by Vinay Dwivedi)

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