Canada Stocks: TSX near record closing high; mining shares up with gold, copper
CANADA STOCKS-TSX near record closing high; mining shares up with gold, copper Updates at market close
By Tharuniyaa Lakshmi and Fergal Smith
July 3 (Reuters) - Canada's main stock index rose on Friday to a two-week high, as gold and copper prices rose and metal mining shares led broad-based gains after expectations decreased for Federal Reserve interest rate hikes.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 308.17 points, or 0.9%, at 35,274.84, marking the highest closing level since the index posted a record closing high on June 16. For the week, the index added 0.8%.
"Weaker U.S. job data reduced expectations of further interest rate hikes," said Matt Manara, executive vice president and portfolio manager at Avenue Investment Management. "Lower rate expectations weaken the U.S. dollar, boost gold and benefit Canadian resource stocks."
Investors have dialed back expectations for a near-term rate hike from the Fed after data on Thursday showed that U.S. job growth slowed sharply in June.
Nine of 10 major sectors posted gains, including materials .GSPTTMT, which includes metal mining shares. It rose 2.4% as gold XAU= and copper HGc1 prices climbed.
Energy .SPTTEN added 0.6% as the price of oil CLc1 edged 0.1% higher to $68.78 a barrel.
Canada announced on Thursday plans to build a new oil pipeline from Alberta to the Pacific coast, which would give the world's fourth-largest oil producer greater capacity to export to Asia and ease its reliance on the United States.
Industrials .GSPTTIN were up 0.9%, led by a 3.6% gain for the shares of AtkinsRealis Group Inc ATRL.TO after the company said it anticipates that Turkey will complete an early review of its CANDU reactors following an information exchange later this summer.
Trade-sensitive stocks, such as leisure products company BRP Inc DOO.TO and auto parts supplier Magna International, rebounded after they posted steep declines on Thursday, which helped lift consumer discretionary .GSPTTCD by 0.8%.
On Wednesday, the U.S. declined to extend the United States-Mexico-Canada Agreement, as expected, seeking changes to the trade deal.
Technology .SPTTTK rose 0.8% and heavily weighted financials .SPTTFS ended 0.4% higher.
(Reporting by Fergal Smith in Toronto and Tharuniyaa Lakshmi in Bengaluru; Editing by Alex Richardson and David Gregorio)
((fergal.smith@thomsonreuters.com; +1 647 480 7446))