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CANADA STOCKS-Toronto market notches 4-week high as U.S. inflation heats up

Credit: REUTERS/CHRIS HELGREN

Canada's main stock index climbed to a four-week high as hot U.S. inflation data bolstered the attractiveness of metal mining shares, while the technology group also gained ground.

By Fergal Smith

TORONTO, Oct 13 (Reuters) - Canada's main stock index climbed to a four-week high as hot U.S. inflation data bolstered the attractiveness of metal mining shares, while the technology group also gained ground.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 181.35 points, or 0.9%, at 20,618.47, its highest closing level since Sept. 15.

"It is mostly to do with the higher inflationary number coming out of the U.S.," said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth.

"That has sparked a pretty bid drive right up in gold, materials ... that's what's driving the bus."

U.S. consumer prices increased solidly in September as Americans paid more for food, rent and a range of other goods, putting pressure on the Biden administration to urgently resolve strained supply chains, which are hampering economic growth.

Gold XAU= is seen as a hedge against inflation. It rose nearly 2%, helped also by a pullback in U.S. Treasury yields, while copper futures HGc1 advanced 3.8%.

Both the materials group, which includes precious and base metals miners and fertilizer companies, and the technology sector added 2.2%, while industrials ended up 1.3%.

Energy gave back some recent gains, falling 0.6%, as the rally in crude oil lost some momentum. U.S. crude oil futures CLc1 settled 0.3% lower at $80.44 a barrel.

Among the largest percentage gainers on the TSX were Eldorado Gold Corp ELD.TO, which rose 9.3%, and Blackberry Ltd BB.TO, which ended 4.7% higher.

(Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Cynthia Osterman)

((fergal.smith@thomsonreuters.com; +1 647 480 7446;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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