Canada Stocks: TSX rises on consumer and energy boost; set for weekly fall

Magna International

01/11/2024 14:58

(Updated at 10:06 a.m. ET/ 1406 GMT)
    By Nikhil Sharma
       Nov 1 (Reuters) - Canada's main stock index rose on
Friday, led by consumer discretionary and energy shares,
rebounding from a selloff in the previous session as markets
inch closer to next week's U.S. election.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  was up 139.83 points, or 0.58%, at 24,296.7.
    However, the index was set to log a weekly loss as it was
partly affected by the U.S. election uncertainty and lackluster
earnings from some of Wall Street's megacaps.
    At least ten sectors on the index gained, led by the
consumer discretionary sector  .GSPTTCD  jumping 1.6%, as it
benefitted from a 7.8% rise in Magna International  MG.TO  after
auto parts maker reported its third-quarter results.
    The energy sector  .SPTTEN  also jumped 1%, tracking a surge
in oil prices after reports that Iran was preparing a
retaliatory strike on Israel in the coming days.  O/R 
    "I think there's probably a bit of rallying given the
sell-off that happened yesterday," said Kevin Headland, co-chief
investment strategist at Manulife Investment Management.
    Headland added "seasonality tends to be strong" as November
and December are typically strong months for the index.
    Among economic data, U.S. job growth fell sharply in
October, but the unemployment rate remained steady at 4.1%,
keeping bets on a Federal Reserve rate cut in November intact.
    Market participants widely expect the Fed to cut interest
rates by 25 basis points at its policy meeting next Thursday,
with estimates for a similar cut in December.  0#FEDWATCH 
    Global investors also weighed the potential impact of next
week's closely contested U.S. presidential election, with many
betting sites favoring Republican candidate Donald Trump's
victory.
    Separately, Canadian manufacturing activity increased at a
faster pace in October as production and employment picked up in
anticipation of rising orders.
    Among other stocks, Air Canada  AC.TO  rose 12% after
raising its annual core profit forecast and announced share
buybacks, benefitting from strong demand for international
travel.

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