Canada Stocks: TSX inches up; investors cautious ahead of US data

Osisko Mining

12/08/2024 15:33

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      TSX up 0.28%
    

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      Osisko Mining to be acquired by Gold Fields, shares climb
    

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      Materials lead the sectoral gains
    

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      Barrick Gold beat Q2 profit estimates
    

  
 (Updated at 10:24 a.m. ET/ 1424 GMT)
    By Nikhil Sharma
       Aug 12 (Reuters) - Canada's main stock index edged
higher on Monday, helped by sharp rise in resources-linked
shares, while investor caution ahead of a data-packed week in
the United States contained gains. 
    At 10:25 a.m. ET (14:25 GMT), the S&P/TSX composite index
 .GSPTSE  was up 64.21 points, or 0.29%, at 22,375.51.
    Heavyweight energy stocks  .SPTTEN  jumped 2% to lead the
sectoral gains, after easing U.S. recession fears and supply
risks in Middle East boosted oil prices.  O/R 
    Canada's materials sector  .GSPTTMT  also logged gains,
pulled up by a 62% gain in Osisko Mining  OSK.TO .
        The company's shares jumped to the top of the TSX after
South Africa-based Gold Fields Ltd  GFIJ.J  agreed to acquire
the Canadian miner for C$2.16 billion ($1.57 billion).
    Barrick Gold  ABX.TO  shares rose 5.8% as the gold miner
beat Wall Street estimates for second-quarter profit, adding to
the sector's rise.
    Other miners also tracked gains in gold and copper prices.
 GOL/   MET/L 
    Rate-sensitive real estate  .GSPTTRE  and utilities
 .GSPTTUT  sectors logged losses, dropping 0.9 and 0.8%,
respectively.
        Investors were cautious ahead of a host of datasets
expected in the United States this week, including the U.S.
consumer price index (CPI) due on Wednesday to gauge the Federal
Reserve's stance on its monetary policy.
    Markets are hoping for a rate cut at the U.S. central bank's
September meeting. 
    "Ideally, we don't want to see too soft data to show that
the U.S. is falling into recession," said Allan Small, senior
investment advisor at Allan Small Financial Group with iA
Private Wealth.
    "But at the same time we don't want to see strong data which
would show us persistent inflation."
    Canadian markets logged weekly gains amid volatility last
week, when recessionary fears in the United States and the
unwinding of carry trades funded by the Japanese yen had sparked
a global equity sell-off.
    However, those recession-related concerns were quelled by a
favourable U.S. jobs report as overblown later in the week. 

 (Reporting by Nikhil Sharma in Bengaluru; Editing by Shreya
Biswas)
 ((Nikhil.Sharma@thomsonreuters.com))