- Oil hits 2023 highs, lifting energy stocks
- Mining stocks lead sectoral gains
- Canopy Growth seeks bankruptcy protection for unit
- TSX adds 1.0%, up for fourth day
Sept 14 (Reuters) – Canada’s main stock index jumped on Thursday as a rise in commodity prices lifted materials and energy stocks, while the markets remained optimistic about a pause in U.S. interest rate hikes despite hotter-than-expected economic data.
At 10:47 a.m. ET (1447 GMT), the Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) was up 204.38 points, or 1.01%, at 20,483.32.
The heavyweight energy sector (.SPTTEN) climbed 1.0% as U.S. crude prices rose 1.8% a barrel, while Brent crude added 1.8%.
Oil prices hit their highest level in 2023 as expectations of a tighter global crude supply outlook for the rest of the year overshadowed concerns over weaker economic growth and rising U.S. inventories.
Miner-populated materials sector (.GSPTTMT) led sectoral gains, adding 1.8% after China – the largest metal consumer in the world – took measures that alleviated price pressure from heavy inventories.
Data from across the border showed U.S. retail sales in August rose more than expected on higher fuel prices, while weekly jobless claims inched upward. However, bets around the U.S. Federal Reserve pausing interest rates in its September meeting remained unaffected.
U.S. stock indexes rose more than half a percent each.
“We still have many rate hikes that have not even matured to a year period, and as they work their way through the economy, the Fed should be satisfied that the prior hikes have done the job,” said Peter Andersen, founder of Andersen Capital Management.
Meanwhile, the European Central Bank raised its key interest rate to a record high of 4%.
Reporting by Khushi Singh; Editing by Tasim Zahid
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