Canada Stocks: Toronto market rises to 3-week high on peak U.S. dollar hopes

Celestica

25/10/2022 21:51

(Adds analyst quotes and details throughout; updates prices)

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      TSX ends up 178.61 points, or 0.9%, at 19,097.91
    

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      Posts its highest closing level since Oct. 5
    

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      Canopy Growth jumps 25.7%
    

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      Celestica shares advance nearly 16% 
    

  
    By Fergal Smith
       TORONTO, Oct 25 (Reuters) - Canada's main stock index
rose on Tuesday to its highest closing level in nearly three
weeks as investors welcomed declines for the U.S. dollar and
U.S. Treasury yields and helped by big gains for Celestica Inc
 CLS.TO  and Canopy Growth Corp  WEED.TO . 
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended up 178.61 points, or 0.9%, at 19,097.91, its
third straight day of gains and its highest closing level since
Oct. 5.
    "These small pockets of strength that we are getting in the
market right now are justifiable just given how oversold the
market was," said Sid Mokhtari, chief market technician at CIBC
Capital Markets.
    Better-than-expected corporate earnings, a potential peak in
the U.S. dollar and signs that the U.S. 10-year yield is in the
latter stages of its upward move are also supportive of stocks,
Mokhtari said.
    Wall Street also ended higher and the greenback  .DXY  fell
against a basket of major currencies as soft economic data
hinted that the Federal Reserve's aggressive policy is taking
effect, while falling Treasury yields boosted the rally's
momentum.
    Investors have worried that higher borrowing costs will tip
some major economies into recession.
    Money markets expect the Bank of Canada to raise interest
rates by three-quarters of a percentage point on Wednesday to a
14-year high of 4%.
    The Toronto market's health care sector rallied 6.3% as
shares of cannabis producer Canopy Growth Corp jumped 25.7% on
plans to create a holding company to speed up the company's
entry into the United States.
    Among other major movers was Celestica Inc. Its shares
advanced nearly 16% after the electronics company reported
third-quarter results that beat analysts' estimates.
    The technology sector rose 1.8%, while the materials group,
which includes precious and base metals miners and fertilizer
companies, added 1.3%.
 (Reporting by Fergal Smith; Additional reporting by Shashwat
Chauhan in Bengaluru
Editing by Alistair Bell)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446;))