Canada Stocks: Toronto stocks advance as miners lead broader gains

Orla Mining

10/07/2024 15:57

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      TSX up 0.7%
    

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      Materials lead sectoral gains
    

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      Orla mining provides Q2 operational results; shares gain 
    

  
 (Updated at 10:26 a.m. ET/ 1426 GMT)
    By Nikhil Sharma
       July 10 (Reuters) - Canada's main stock index rose on
Wednesday, amid broad sectoral gains, while markets awaited
fresh economic data from the U.S. for further clues on the
Federal Reserve's monetary policy path.
    At 10:26 a.m. ET (1426 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was up 163.79 points, or
0.74%, at 22,206.29, on track for its best day in a week.
    The materials sector  .GSPTTMT  led the sectoral gains and
rose 1.7%, hitting its highest level in over a month. The sector
tracked spot gold prices  XAU=  which rose on a stronger case
for U.S. interest rate cuts sooner.  GOL/  
    "The material sector is responding favorably to Powell's
comments. If interest rates were to decrease, that would be a
positive for gold as investors would be more likely to look to
gold as an alternative to fixed income," said Graham Priest,
investment advisor at BlueShore Financial.
    The communication services sector  .GSPTTTS  was the only
outlier with a 0.1% decline. 
    Investors digested Monday's Fed Chair Jerome Powell's
congressional testimony, where he acknowledged the U.S. economy
was no longer overheated, fuelling September rate cut hopes.
    The policymaker's second day of testimony was currently
underway.  
    On Wall Street, the benchmark S&P 500  .SPX  and the Nasdaq
 .IXIC  touched fresh record highs, driven by continued strength
in megacaps.  .N 
    To evaluate the future trajectory of interest rates, markets
will closely watch the U.S. consumer price index and producer
price index data, due on Thursday and Friday, respectively.
    Separately, hopes of another rate cut from the Bank of
Canada at its July 24 meeting are high, after the last jobs
dataset showed Canadian unemployment at a 29-month high.
    "Quick rise in unemployment could lead to a negative impact
on the economy and a significant drop off in consumer spending,"
Graham added.
    In individual stocks, Orla Mining  OLA.TO  gained 2.5% after
the miner provided second-quarter operational results.

 (Reporting by Nikhil Sharma in Bengaluru; Editing by Tasim
Zahid)
 ((Nikhil.Sharma@thomsonreuters.com;))