Canada Stocks: TSX inches higher despite surprise rise in producer prices

Cronos

18/11/2022 15:44

(Adds comments; updates prices, details)

        * 
      TSX set to end the week lower 
    

        * 
      PPI higher than expected 
    

  
    By Johann M  Cherian
       Nov 18 (Reuters) - Canada's main stock index inched
higher on Friday after two straight days of losses, lifted by
financial and industrial stocks, while investors looked past a
surprise jump in producer prices in October.
    Data showed producer prices in Canada rose more than
expected to 2.4% on higher prices for refined petroleum
products.
    At 10:20 a.m. ET (1520 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was up 31.53 points, or 0.16%,
at 19,916.11.
    The industrial  .GSPTTIN  and financial sector  .SPTTFS 
were top gainers, up 1.0% and 0.5% respectively.
    "As we near the end of the year, the historical trend is
what is called the Santa Claus rally," said Brandon Michael,
senior analyst at ABC Funds. "It's this period of strong
seasonality where investors would want to be invested in the
market."
    Inflation data has been mixed this week, with consumer
inflation meeting expectations, while producer prices were
hotter than expected. However, there were growing signs that
U.S. inflation was beginning to cool. 
    "There's no doubt that we're witnessing a peaking of
inflation, but central banks do not look at only one number but
at a string of data as a whole when deciding rate hikes,"
Michael added.
    Analysts are anticipating a 25-basis-point hike by the Bank
of Canada in its Dec. 7 policy meeting.  #0BOCWATCH     
    Among stocks, Turquoise Hill Resources  TRQ.TO  rose 1.3%
after Rio Tinto Ltd said it would plough ahead with a $3.3
billion bid to buy the 49% of Turquoise it does not already own.
    Wall Street's main indexes edged higher after posting losses
in the previous session following hawkish comments from a top
Federal Reserve official. .N     
 (Reporting by Johann M Cherian in Bengaluru; Editing by
Shailesh Kuber)
 ((johann.mcherian@thomsonreuters.com;))