CANADA STOCKS-TSX touches near eight-week high on softer U.S. inflation print
(Updated at 09:45 a.m. ET (14:45 GMT))
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TSX adds 1.4%
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Teck Resources up after $9 bln deal for coal assets
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Sun Life rises on profit beat
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Canadian dollar strengthens, benchmark yield slips
By Khushi Singh
Nov 14 (Reuters) - Canada's main stock index touched the highest level in nearly eight weeks as softer-than-anticipated U.S. inflation data bolstered expectations that the Federal Reserve is done hiking interest rates, while a surge in commodity prices lifted energy and material stocks.
At 9:45 a.m. ET (1445 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 265.53 points, or 1.35%, at 19,974.68, on track for a four-day winning streak.
The Canadian dollar also strengthened against the greenback, while the government's 10-year bond yields slipped.
U.S. consumer prices were unchanged in October on the back of lower gasoline prices and underlying inflation slowing, bolstering the view that the U.S. central bank was probably done raising interest rates.
"The drop in inflation suggests that recent monetary policy has been doing its job," said Richard Flynn, Managing Director at Charles Schwab UK, in a note.
"All in all, “higher for longer” (interest rate) looks like a much more sensible move than “even higher”."
Traders see no more rate increases and have been adding to bets on rate cuts starting May 2024.
The sentiment spurred a rise in rate-sensitive stocks, with top gainer real estate index adding 3.0%, financials up 1.5%, and the information technology stocks gaining 1.7%.
Materials sector, which includes precious and base metals miners and fertilizer companies, advanced 2.8% as prices of both gold and copper rose following the favourable inflation print from the U.S.
A 2.8% rise in shares of Teck Resources also supported the materials index after a Glencore-led consortium agreed to acquire the Canadian miner's steel-making coal unit for $9 billion.
The energy sector climbed 0.4% as oil prices rose after the International Energy Agency (IEA) raised its demand growth forecasts.
Sun Life Financial also moved 1.5% higher after the insurer reported better-than-expected quarterly profits, helped by growth at its wealth and asset management unit and higher fees. (Reporting by Khushi Singh in Bengaluru; Editing by Tasim Zahid)
