Tech shares help lift Toronto market to two-month high

  • TSX ends up 0.35% at 20,246.47
  • Posts its highest closing level since Sept. 18
  • Financials add 0.4%; tech ends nearly 1% higher
  • Energy rises as oil settles up 2.25%

Nov 20 (Reuters) – Canada’s main stock index rose on Monday to a two-month high, helped by gains for financial and technology shares, as recent evidence that inflation is cooling continued to underpin investor sentiment.

The Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) ended up 70.70 points, or 0.35%, at 20,246.47, its highest closing level since Sept. 18.

Wall Street also notched gains as U.S. Treasury yields eased. Investors have grown more optimistic that borrowing costs have peaked following data last week showing a slowdown in U.S. inflation.

“We’re seeing basically inflation head lower around the world, and I don’t think Canada’s inflation data will be any different,” Jennifer Lee, senior economist at BMO Capital Markets said.

Canada’s consumer price index report, due on Tuesday, is expected to show inflation cooling to 3.2% in October from 3.8% in September.

Canada’s economy is flirting with recession, and the downturn could worsen now that a period of rapid growth in the United States is expected to end, raising bets on the BoC shifting to interest rate cuts sooner than previously thought.

Heavily-weighted financials added 0.4% and technology ended nearly 1% higher.

Energy was up 0.2% as the prospect of further OPEC supply cuts boosted oil prices. U.S. crude oil futures settled 2.25% higher at $77.60 a barrel.

Shares of First Quantum Minerals Ltd (FM.TO) remained volatile, falling 3.5%.

The company will carry out maintenance at its Panama mine from Nov. 23 due to coal supplies being blocked by protesters opposing the government’s contract with one of the world’s biggest and newest copper mines, two sources familiar with the discussions said.

Reporting by Fergal Smith in Toronto and Siddarth S in Bengaluru; Editing by Tasim Zahid and Marguerita Choy

Our Standards: The Thomson Reuters Trust Principles.

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