Canada Stocks: TSX edges up as consumer discretionary, tech stocks gain

Meren Energy

10/01/2024 15:30

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      TSX edges up 0.1%
    

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      Consumer discretionary, tech stocks advance
    

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      Healthcare, materials stocks cap gains
    

  
 (Updated at 10:08 a.m. ET/ 1508 GMT)
    By Purvi Agarwal and Amruta Khandekar
       Jan 10 (Reuters) - Canada's main stock index edged
higher on Wednesday, boosted by consumer discretionary and
technology stocks, as investors awaited U.S. inflation data
later this week for potential clues on interest rate cuts. 
    At 10:08 a.m. ET (1508 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was up 24.07 points, or 0.11%,
at 20,995.05.
        Across the border, Wall Street's main indexes also
gained as U.S. Treasury yields eased. Canada's ten-year
benchmark yield  CA10YT=RR  also inched lower.
  
    Consumer discretionary  .SPLRCD  stocks led the charge on
Wednesday, rising 0.6%, followed by technology shares  .SPTTTK ,
which gained 0.4%.
        "The fact that Treasury yields and Government of Canada
yields are slightly lower is helping tech and some of the growth
parts of the market outperform today", said Angelo Kourkafas,
senior investment strategist at Edward Jones.
  
        Energy shares  .SPTTEN  gained 0.3% as oil rose around
1% in a second day of gains.  O/R   
    However, the healthcare sector  .GSPTTHC  was a drag,
falling 2.5% as cannabis company Tilray Brands  TLRY.TO  tumbled
7.1%, extending losses from the previous session. 
        The materials sector  .GSPTTMT  slipped 0.7%, tracking
prices of precious metals lower.  GOL/ 
        Canadian markets have had a tepid start to the week as
investors nervously await U.S. consumer prices data due on
Thursday that will test expectations that rate cuts by the
Federal Reserve could begin as early as March.
  
        "It (the first rate cut) might be a little later, but
nevertheless, doesn't change the fact that most likely we're
going to see the Fed and Bank of Canada's policy easing in the
back half of the year," said Kourkafas.
  
        Investors also await the quarterly figures from big U.S.
banks such as JPMorgan Chase  JPM.N  on Friday.
    Africa Oil Corp  AOI.TO  shares rose over 6% after the
company announced a farmout transaction for its offshore Namibia
interests. 

 (Reporting by Purvi Agarwal and Amruta Khandekar in Bengaluru;
Editing by Ravi Prakash Kumar)
 ((Purvi.Agarwal@thomsonreuters.com))