Canada Stocks: Toronto stocks rise on early rate-cut hopes

Open Text

03/05/2024 15:11

* 
      Magna down on missing earnings estimates
    

        * 
      TC Energy jumps on Q1 profit beat
    

        * 
      TSX up 0.5%
    

  
 (Updated at 9:50 a.m. ET)
    By Shubham  Batra
       May 3 (Reuters) - Canada's main stock index jumped on
Friday, led by gains in healthcare shares, while the slowing
U.S. jobs growth in April raised hopes of early interest rate
cuts by the U.S. Federal Reserve.
    At 9:50 a.m. ET (13:50 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was up 111.11 points, or
0.51%, at 21,934.33. The index is, however, set for weekly
losses.
    U.S. job growth slowed more than expected in April and
annual wage gains cooled, with traders now adding to bets that
the Fed will deliver its first interest rate cut this year in
September compared with expectations of one cut in December
before the data.  FEDWATCH 
    "Today's weaker numbers need to mark the start of a new
slower trend for multiple rate cuts to seriously be back on the
agenda - but, by then, the new fear could be a slowing economy,"
said Seema Shah, Chief Global Strategist, Principal Asset
Management. 
    Yields on the 10-year Canadian bond  CA10YT=RR  were down 8
basis points to 3.653 and the loonie  CAD=  also lost ground
after the U.S. data.
    Across the border, Wall Street's main indexes surged with
Nasdaq  .IXIC  rising above 2% after the jobs report, while
gains in Apple and Amgen on upbeat corporate updates added
support.  .N 
    Back home, shares of Open Text  OTEX.TO  dropped 18.6% after
several brokerages cut the target price on the software firm
post its earnings update on Thursday. 
    Magna International  MG.TO  was down 3.3% after the auto
parts supplier missed analysts' estimates for first-quarter
profit and cut its full-year overall sales forecast as it
navigates headwinds from supply chain snags.
    On the flip side, Trisura Group  TSU.TO  was the top gainer
on the benchmark index, rising 6.7%, after it reported its
quarterly insurance revenue above market estimates.
    TC Energy  TRP.TO  was up 3.5% on beating first-quarter
profit estimates, as strong energy demand boosted the pipeline
operator's transport volumes of oil and gas.

 (Reporting by Shubham Batra in Bengaluru; Editing by Vijay
Kishore)
 ((Shubham.Batra@thomsonreuters.com;))