Canada Stocks: TSX reaches six-week high on energy, mining boost

Avalon Advanced Materials

04/07/2023 15:18

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      Miners up on higher gold, silver prices
    

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      Energy stocks up on higher oil prices
    

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      June S&P Global Canada Manufacturing PMI at 48.8 vs 49 in
May
    

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      TSX up 0.2%
    

  
 (Updated at 10:04 ET)
    By Shashwat Chauhan
       July 4 (Reuters) - Canada's main stock index rose on
Tuesday, with energy and materials stocks amongst top gainers
tracking higher oil and metal prices as traders returned after a
long weekend.
    At 10:04 a.m. ET (1404 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was up 31.28 points, or 0.16%,
at 20,186.57, touching a six-week high.
    The energy sector  .SPTTEN  gained 0.8% tracking higher
crude prices as markets weighed supply cuts for August by top
exporters Saudi Arabia and Russia against a weak global economic
outlook.  O/R 
    The materials sector  .GSPTTMT , which houses Canada's major
precious metal miners, rose 0.7% as gold  XAU=  prices gained
momentum.  GOL/ 
    Canadian miners Teck Resources  TECKb.TO , Neo Performance
Materials  NEO.TO , Avalon Advanced Materials  AVL.TO  gained
between 0.2% - 12% after China's decision on Monday to restrict
exports of some metals widely used in semiconductors and
electric vehicles.
        Meanwhile, data showed contraction in Canada's
manufacturing sector deepened slightly in June as an uncertain
economic outlook weighed on both domestic and foreign demand.
    The Bank of Canada's decision on policy tightening is due
next week, where traders are split between another 25-basis
point hike and the central bank keeping rates steady.
    "One would hope that the BoC is seeing a slowdown on the
manufacturing side of things, even though on the services side,
they're not," said Allan Small, senior investment adviser of
Allan Small Financial Group with iA Private Wealth.
    "That is the problem for the BoC ... how much do they
increase rates to bring down that stubborn core and services
inflation."
    Trading is expected to be light as most of Wall Street was
closed for an Independence Day holiday. Canadian markets were
closed for the Canada Day holiday on Monday.
        The TSX eked out a meager quarterly gain in the
April-June period, pressured by volatile commodity prices on an
uncertain outlook in top commodities consumer China.

 (Reporting by Shashwat Chauhan in Bengaluru
Editing by Alistair Bell)
 ((Shashwat.Chauhan@thomsonreuters.com;))