Canada Stocks: Technology, commodity-linked stocks boost Toronto shares

Torex Resources

13/07/2023 15:48

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      U.S. producer prices barely rose in June
    

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      Tech, materials stocks gain
    

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      TSX up 0.6%
    

  
 (Updated at 10:23 a.m. ET)
    By Siddarth S and Shashwat Chauhan
       July 13 (Reuters) - Canada's main stock index rose on
Thursday, driven by gains in materials and technology stocks
after further evidence of cooling U.S. inflation fueled hopes
that the Federal Reserve is closing in on the end of its
rate-hiking cycle.
       At 10:23 a.m. ET (1423 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was up 128.82 points, or
0.64%, at 20,199.59.
    U.S. producer prices barely rose in June and the annual
increase in producer inflation was the smallest in nearly three
years, data showed on Thursday.
        The data, which came on the heels of a reading showing
cooling U.S. consumer prices, added to evidence that the world's
largest economy had entered a disinflation phase.
  
    Traders are betting on the Fed to wrap up its aggressive
rate-hiking cycle later this year.
        "This slowing in inflation will be encouraging for Fed
officials, especially doves concerned about downside risks to
activity," Citi economists wrote in a note.
  
        "This suggests a likely inclination to a 'wait and see'
more data (approach) after a still-very-likely hike in July."
  
        Canadian information technology stocks  .SPTTTK  climbed
2.1% as e-commerce firm Shopify  SHOP.TO  gained 5.4%, to hit an
over-one-year high.
        Mining stocks  .GSPTTMT  rose 0.4%, as metal prices rose
with peak rate expectations weighing on the dollar, while energy
firms  .SPTTEN  climbed 0.3%, boosted by higher oil prices.
 O/R   MET/L 
  
    The Bank of Canada (BoC) had raised interest rates as
expected to 5.00% on Wednesday, but hinted at further hikes
because of the risk of inflation stalling above its 2% target.
    Torex Gold Resources  TXG.TO  slipped 4.5% after the gold
producer reported second quarter production results.

 (Reporting by Siddarth S and Shashwat Chauhan in Bengaluru;
Editing by Pooja Desai)
 ((Shashwat.Chauhan@thomsonreuters.com;))