HomeStock MarketResource-linked stocks boost TSX, leading to a rise in the market.

Resource-linked stocks boost TSX, leading to a rise in the market.

TSX Rises on Resource-Linked Stocks Boost

Resource-Heavy Index Climbs

Canada’s resource-heavy index climbed on Thursday, aided by gains in commodity-linked stocks, while a lower-than-expected retail sales data report in the United States revived some hopes of an early interest rate cut.

Toronto Stock Exchange’s S&P/TSX Composite Index

At 10:33 a.m. ET (1533 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 194.64 points, or 0.93%, at 21,084.04.

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Energy and Materials Sectors

Energy shares advanced 2.8%, as oil prices rebounded from earlier losses in the day. The materials sector, which houses Canadian miners, was up 2.4% and on track for its best day in two months as prices of gold and extended gains on a softer dollar.

Market Sentiment

Market sentiment was buoyed after U.S. retail sales fell more than expected in January, with the benchmark and Dow Jones gaining after the data.

Impact on the Market

“Today’s data are not necessarily bad news for the market. It implies that the exceptional strength we have seen on the consumer side is fading a bit and the Fed won’t have to worry that strong economic growth will reaccelerate inflation,” said Angelo Kourkafas, investment strategist at Edward Jones Investments.

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Canadian Economic Data

Canadian housing starts fell 10% in January, while factory sales declined 0.7% in December, data from the national housing agency and Statistics Canada, respectively, showed on Thursday.

Financial Sector

Heavy-weight financials were up 0.9%, led by a 6.5% jump in Manulife Financial after the Canadian insurer topped estimates for fourth-quarter results.

Upcoming Earnings Reports

Earnings momentum in Canada was poised to pick up pace with gold miner Agnico Eagle Mines and asset manager IGM Financial, among others, set to report their quarterly results on Thursday after the bell.

Stock Movements

Shares of gold miner Seabridge Gold climbed 15.5%, rebounding from a near four-year low. MTY Food Group sank to the bottom of the index with a 10.9% decline after the restaurant operator reported its fourth-quarter results.

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