Canada Stocks: Toronto stocks climb record high after US economic data

BRP

17/10/2024 16:18

(Updated at 10:16 a.m. ET/ 1416 GMT)
    By Nikhil Sharma
       Oct 17 (Reuters) - Canada's main stock index hit a
record high on Thursday due to gains in financial and commodity
stocks, and following Wall Street's rally spurred by U.S. retail
sales data.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  was up 102.11 points, or 0.42%, at 24,663.31 and was
set to extend its record closing streak from Wednesday.
    Eight sectors logged gains, with the energy sector  .SPTTEN 
up 0.73% on higher oil prices, and the materials  .GSPTTMT  rose
0.60% in tandem with higher gold prices.  O/R   GOL/ 
    The financials  .SPTTFS , the most heavily weighted TSX
sector, gained 0.68% following an over 1% rise in Brookfield
Corporation  BN.TO  and Trisura Group  TSU.TO .
    "The mostly upbeat earnings reports we've seen from U.S.
banks has helped support Canadian financials", along with
expectations of an aggressive interest rate cut in Canada, said
Douglas Porter, chief economist at BMO Capital Markets.
    One of the key factors in overall gains was the positive
sentiment from Wall Street, where the benchmark S&P 500  .SPX 
hit an intraday record high after U.S. economic data and an
upbeat forecast from TSMC.  .N 
    Retail sales rose more than expected in September, pointing
to resilient consumer financial health, while U.S. weekly
jobless claims unexpectedly fell at 241,000 for the week ended
Oct. 12, compared with an estimate of 260,000.
    "You have an economy that remains on solid footing,
corporate profits on the rise, and central banks letting off the
brakes," said Angelo Kourkafas, investment strategist at Edward
Jones Investments.
    "And all of that adds to the soft-landing optimism that has
fueled the market gains so far here to date."
    The U.S. Federal Reserve has already cut rates by 50 basis
points last month and traders widely expect a quarter-point cut
at the Nov. 7 meeting.  0#FEDWATCH 
    Among individual stocks, BRP  DOO.TO  fell 1.3% after the
Canadian manufacturer of power products initiated a process to
sell its marine businesses.

 (Reporting by Nikhil Sharma in Bengaluru; Editing by Vijay
Kishore)
 ((Nikhil.Sharma@thomsonreuters.com;))