CANADA STOCKS-TSX notches biggest gain in two months as China jitters ebb

  • 9/22/2021
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(New throughout, updates prices, market activity and comments) * TSX ends up 0.8% * Posts its biggest gain since July 21 * Energy sector gains 3.9%; financials end 0.7% higher * Celestica Inc shares jump 17.3% TORONTO, Sept 22 (Reuters) - Canada’s main stock index on Wednesday climbed by the most in two months as higher oil prices and reduced market concerns around property developer China Evergrande offset a hawkish signal from the U.S. Federal Reserve. The Toronto Stock Exchange’s S&P/TSX composite index ended up 157.20 points, or 0.8%, at 20,401.49, its biggest gain since July 21. A cash injection from the People’s Bank of China helped boost investor sentiment after worries about the potential collapse of China Evergrande weighed on global financial markets in recent days. “Now with People’s Bank of China stepping in to support China’s financial system, commodities are bouncing back and that’s a positive for Canadian markets,” said Colin Cieszynski, chief market strategist at SIA Wealth Management. U.S. crude futures settled 2.5% higher at $72.23 a barrel, while the Toronto stock market’s energy sector ended up 3.9%. The heavily-weighted financial services sector climbed 0.7% and consumer discretionary was up 1.4%. Shares of electronics company Celestica Inc jumped 17.3% as the company updated its earnings guidance. Still, the TSX is headed for its first monthly decline since January amid concerns over slowing global growth and a potential reduction of stimulus by the Fed. The U.S. central bank on Wednesday cleared the way to reduce its monthly bond purchases “soon” and signaled interest rate increases may follow more quickly than expected. (Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by David Gregorio)

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