TSX gains on rising oil inventories and robust employment recovery

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October 8 (Reuters) – Canada’s main stock index rose on Friday and was expected to post its first weekly gain in four, as energy stocks surged on rising oil prices, while jobs increased to pre-pandemic levels signaled a strong economic recovery.

The Canadian economy saw a massive job gain in September, bringing inflation back to pre-pandemic levels, and the unemployment rate hit an 18-month low, Statistics Canada data said on Friday. .

At 10:11 a.m. ET (2:11 p.m. GMT), the Toronto Stock Exchange’s S & P / TSX Composite Index was up 79.97, or 0.39%, to 20,496.18.

Canada’s energy index jumped nearly 2% to its highest level since May 2019 and is expected to post its fourth consecutive weekly gains following soaring energy prices.

“I don’t think the central bank is going to act too quickly to raise rates as there is still some recovery and with the decline in asset purchases well integrated, better than expected employment data gives a positive outlook for equity markets, ”said Mike Archibald, portfolio manager at AGF Investments.

The Canadian stock index has gained 17.4% so far this year on hopes of an economic recovery and renewed optimism, but the pace of gains has recently faltered amid concerns over inflation higher that could derail global economic growth.

Data showed that U.S. employment grew much less than expected in September amid declining government payrolls.

Investors are assessing a more uncertain outlook for the strength of the U.S. economic rebound relative to what the slowing job growth means for the Federal Reserve’s expected November announcement of a decrease in its purchases of active.

STRONG POINTS

On the TSX, 164 issues were up, while 67 issues were down for a 2.45 to 1 ratio in favor of winners, with 36.50 million shares traded.

Endeavor Silver Corp and Birchcliff Energy were the biggest percentage gainers on the TSX.

The TSX posted 11 new 52-week highs and three new lows.

Among all Canadian issues, there were 51 new 52-week highs and 25 new lows, with total volume of 69.52 million shares. (Reporting by Shashank Nayar in Bangalore; Editing by Rashmi Aich)


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Felix J. Dixon

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