Update: TSX Adds 48 Points, Paced by Consumer & Financial Stocks, in Its Fifth Straight Winning Session
Canada's main stock market rose for the fifth straight session on broad-based gains, paced by consumer and materials issues. The S&P/TSX Composite Index was up 48 points or 0.3% to close at 15,959. The global rally and the ongoing strength in oil prices provided support, with crude closing up 0.3% to $71.36 after posing highs of $71.86 overnight. U.S. markets were also stronger, with the Dow Jones gaining nearly 200 points and the S&P 500 adding 0.9%.
GoC bonds couldn't maintain their early rally, however, despite tame inflation readings around the world which knocked most yields lower, including the 10-year Treasury, while the U.K. Gilt closed with a 2.7 bps drop to 1.428% after the BoE left policy unchanged and trimmed its GDP and CPI forecasts.
In sector action on the TSX, consumer stocks were up about 1% while materials rose 0.8% (as gold snapped a four-day losing streak), financials gained 0.5% while energy was flat, despite stronger crude prices.
In stock news, New Flyer Industries (NFI.TO) was off 2% after reporting narrower Q1 earnings but stronger revenues, at the same time increasing its dividend. Canadian Tire (CTC-A.TO) lost 6% after posting weaker Q1 earnings per share, falling short of analyst predictions. Magna International (MG.TO) gained 2% after recording stronger earnings and revenues. Heavily traded Baytex Energy (BTE.TO) and Athabasca Oil (ATH.TO) shed 1% while Enbridge (ENB.TO) gained 1% after more than doubling its Q1 adjusted earnings.
In economic news, Canada's new housing price index was flat in March (0.0%) following the 0.2% drop in February and flat readings in January and December that ended a run of monthly increasing stretching from November 2017 to May 2015. New housing price growth slowed to a 2.4% y/y pace in March from a 2.6% rate of increase in February, as the annual growth rate continues to moderate from the nine-year high 3.9% rates seen in June and April of last year. New and existing home prices have slowed this year as more stringent housing regulations pulled-activity into late 2017 at the expense of this year. However, firm housing starts suggest that sales and prices may see some stabilization this spring.
The Canadian dollar gained more than half-a-cent to 78.33 US.
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