Canada Stocks: Toronto stocks lifted by tech and mining stocks, strong US data

Celestica

29/08/2024 16:02

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      TSX up 0.6%
    

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      Technology and materials lead the sectoral gains
    

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      US GDP grows faster than expected
    

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      Canadian Imperial Bank of Commerce beat Q3 profit
estimates
    

  
 (Updated at 10:12 a.m. ET/ 1412 GMT)
    By Nikhil Sharma
       Aug 29 (Reuters) - Canada's main stock index rose on
Thursday as technology and mining shares gained, while the
investors celebrated the strong U.S. economic data that made a
better case for a soft landing.
    At 10:18 a.m. ET (14:18 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was up 141.39 points, or
0.61%, at 23,267.79.
    The U.S. gross domestic product for the second quarter grew
at a 3% annualized rate on higher consumer spending, quelling
fears of an economic slowdown in the United States.
    "This positive news has really solidified investors'
expectations for that optimistic soft landing scenario where you
have a strong economy, and inflation that is trending lower,"
said Candice Bangsund, vice president and portfolio manager,
global asset allocation at Fiera Capital Corporation.
    Investors are betting on a 25-basis-point reduction by the
Federal Reserve next month; however, they will analyze the U.S.
Personal Consumption Expenditure report on Friday to gauge the
pace and magnitude of future rate cuts.  0#FEDWATCH 
    Meanwhile, the U.S. jobless claims fell slightly last week,
indicating that the unemployment rate still probably remained
high in August.
    Canada's information technology  .SPTTTK  led the sectoral
gains, rising 1.25%, supported by a 3.5% rally in electronics
firm Celestica  CLS.TO .
    Canada's materials sector  .GSPTTMT  rose 1.2% as it
benefited from higher gold prices on amplified hopes of a U.S.
September rate cut.  GOL/ 
    Capped communications  .GSPTTTS  and utilities  .GSPTTUT 
sectors played the spoiler as they declined 0.37% and 0.43%,
respectively.
    Canadian Imperial Bank of Commerce's  CM.TO  rose 5.7% to a
two-year high after the lender beat third-quarter profit
estimates, boosting the financial sector  .SPTTFS , which has
29% weighting on the index, by 0.9%.
    Markets also assessed Nvidia's  NVDA.O  quarterly forecast
which failed to impress investors' towering expectations, even
though results were mostly as anticipated.

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