CANADA STOCKS-TSX climbs to eight-week high as US inflation softens
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TSX ends up 1.6% at 20,023.73
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Real estate jumps 4.4%
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Teck Resources notches deal to sell coal assets
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Sun Life rises on profit beat
(Updates at market close)
By Fergal Smith
Nov 14 (Reuters) - Canada's main stock index rose on Tuesday to a near eight-week high as a slower pace of U.S. inflation data raised hopes that the Federal Reserve will not have to keep interest rates at an elevated level for as long as previously thought.
The Toronto Stock Exchange's S&P/TSX composite index ended up 314.58 points, or 1.6%, at 20,023.73, its fourth straight day of gains and its highest closing level since Sept. 20.
The prospect of interest rates staying "higher for longer is being challenged," said Matt Skipp, president of SW8 Asset Management, adding that such a rethink could benefit the Toronto market because of its high sensitivity to interest rates.
U.S. stocks also rose sharply and bond yields tumbled as data showed underlying U.S. inflation increased in October by the smallest annual amount in two years.
The financials, utilities and real estate sectors, which have a combined weighting on the TSX of more than one third, are particularly sensitive to the rate outlook. Financials added 2.2%, utilities rose nearly 3% and real estate ended 4.4% higher.
The materials sector, which includes precious and base metals miners and fertilizer companies, was another standout, advancing 2.7% as gold and copper prices rallied.
A Glencore-led consortium sealed one of the mining sector's biggest deals in years, agreeing to buy Teck Resources' steelmaking coal unit for $9 billion. Shares of Teck Resources ended down 0.3%.
Sun Life Financial Inc shares rose 3.8% after the insurer reported quarterly earnings that beat analysts' estimates. (Reporting by Fergal Smith in Toronto and Khushi Singh in Bengaluru; Editing by Tasim Zahid and Will Dunham)
