CANADA STOCKS-TSX climbs on materials, tech boost; Powell testimony in focus
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TSX up 0.7%
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Materials shares lead gains; gold prices hit record high
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Fed Chair Powell's testimony on radar
(Updated at 10:28 a.m. ET/ 1528 GMT)
By Purvi Agarwal
March 7 (Reuters) - Canada's main index climbed on Thursday, driven by materials-linked stocks, while investors keenly monitored another day of Federal Reserve Chair Jerome Powell's congressional testimony.
At 10:28 a.m. ET (1528 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 152.51 points, or 0.71%, at 21,746.47.
Investors are focused on Powell's testimony before the Senate Banking Committee, which commenced at 10 a.m. ET, after his comments on Wednesday indicated that interest rate cuts were likely in coming months only if warranted by further evidence of falling inflation.
"If the economy continues to remain strong in the U.S., the Fed would just keep doing what they're doing, which is nothing," said Allan Small, senior investment adviser of Allan Small Financial Group with iA Private Wealth.
"There's no reason to do anything, because the economy is still relatively strong and inflation is still coming down," he added.
Investors now await the crucial nonfarm payrolls report, due on Friday, which could provide further details on the strength of the labor market in the United States.
The materials sector, which houses Canadian miners, climbed 1.5% as gold hit an all-time high on mounting expectations for lower U.S. interest rates this year, while copper touched its highest in five weeks on better-than-expected Chinese trade data.
The sector is up for a sixth session and on track to log its longest winning streak since early 2023, if gains hold.
Information technology stocks also rose 1.1%, led by a 3.7% rise in Descartes Systems after the software company beat fourth-quarter revenue estimates.
Amid the broader rally, consumer discretionary stocks was a laggard, down 0.1%.
Company-wise, manufacturing firm Linamar advanced 10.5% to the top of the TSX after its fourth-quarter results. (Reporting by Purvi Agarwal in Bengaluru; Editing by Shilpi Majumdar)
