Canada Stocks: Toronto stocks flat as energy shares offset gains in materials

Celestica

31/01/2024 15:44

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      TSX flat
    

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      Canada GDP grew 0.2% in November
    

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      Energy stocks top decliners
    

  
 (Updated at 10:14 a.m. ET/ 1514 GMT)
    By Purvi Agarwal
       Jan 31 (Reuters) - Canada's main stock index traded flat
on Wednesday as losses in energy shares overshadowed gains in
materials, while investors assessed a stronger-than-expected
Canadian economic growth ahead of the U.S. Federal Reserve's
interest rate decision.
    At 10:14 a.m. ET (15:14 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was down 10.93 points, or
0.05%, at 21,216.94.
    Energy stocks  .SPTTEN  led declines on the index, falling
0.9%, tracking a fall in crude prices, pressured by lacklustre
economic activity in leading crude importer China.  O/R 
    Losses were capped by heavy-weight material  .GSPTTMT  and
industrial  .GSPTTIN  shares that rose 0.8% and 0.7%,
respectively.
    "Chinese equity markets are down at near multi-year lows,
while the US is at multi-year highs and Canada is kind of stuck
in the middle of that. That's dragging on commodities", said
Colin Cieszynski, portfolio manager and chief market strategist
at SIA Wealth Management.
    Data showed on Wednesday that Canada's economy grew more
than expected in November and likely avoided a technical
recession in the second half of 2023, as the central bank mulls
when to start reducing 22-year high interest rates.
    The benchmark index is set for a third consecutive month of
gains, with rate-sensitive technology stocks on track to
outperform their sectoral peers.
    All eyes are on the Federal Reserve's interest rate
decision, due at 2 p.m. ET, to get more insight into the U.S.
central bank's direction on the timing of rate cuts.
    "The last meeting the Fed came out kind of dovish, and
they've been trying to walk that back. So the question now is
who's going to lead, hawkish people at the Fed who want rates to
remain high or the doves who think the Fed should start cutting
sooner", Cieszynski added. 
    Stateside, the tech-heavy Nasdaq opened lower as tech giants
Alphabet's and Microsoft's projections for rising AI costs
dented megacap and chip stocks.  .N 
    Among individual stocks, electronics company Celestica
 CLS.TO  climbed 4.4% after four brokerages raised the target
price on the stock.

 (Reporting by Purvi Agarwal in Bengaluru; Editing by Vijay
Kishore)
 ((Purvi.Agarwal@thomsonreuters.com))