Canada Stocks: TSX rises as materials stocks gain

Methanex

01/02/2024 15:37

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      TSX rises 0.5% 
    

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      Material stocks top gainers 
    

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      Canadian manufacturing declined in Jan 
    

  
 (Updated at 10:07 a.m. ET/ 1507 GMT)
    By Purvi Agarwal
       Feb 1 (Reuters) - Canada's main stock index rose on
Thursday boosted by materials stocks, while investors repriced
their expectations of the first rate cut to May by the U.S.
Federal Reserve.
    At 10:07 a.m. ET (15:07 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was up 102.28 points, or
0.49%, at 21,124.16.
    Materials stocks  .GSPTTMT  were the top gainers on the
index, rising 1.5%, pulled up by Methanex Corp.  MX.TO  which
rose 3.7% after it beat analysts' estimates for the fourth
quarter. 
    The sector is set for its best day since Jan. 23 if gains
hold.
    Healthcare stocks  .GSPTTHC  trended upwards with a 1.2%
rise, snapping a two-day losing streak.
    While the Fed clearly indicated no possibility of a rate cut
in March, markets took comfort in Chair Jerome Powell's
commentary that the cuts will be sizeable for 2024.
    "Powell's comments were a lot to chew on. He pretty much
ruled out the possibility of a rate cut in March, but he also
definitely set the table for a strong possibility of rate relief
later this year", said Doug Porter, chief economist at BMO
Capital Markets. 
    "Even if the first rate has been pushed back a little bit,
the financial markets are still very enthusiastic that there
could be upwards of 150 basis points of rate cuts this year or
six cuts by the Fed."
    Meanwhile, Canadian manufacturing activity declined for a
ninth straight month in January, but there was a slowdown in the
pace of contraction as inflation pressures eased, data showed on
Thursday.
    Money market participants shifted their focus to the three
tech giants - Apple  AAPL.O , Meta  META.O  and Amazon  AMZN.O 
- that will report earnings after the closing bell in the U.S.
    Amongst individual stocks, luxury parka maker Canada Goose
 GOOS.TO  climbed 5.5% after it forecast its fourth-quarter
revenue above analysts' estimates.

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