Toronto shares post one-week high on rise in tech stocks, miners

  • Technology, miners lead profit
  • A Fed rate decision is expected on Wednesday.

Dec 13 (Reuters) – Canada’s main stock index hit a one-week high on Tuesday, lifted by technology and mining stocks, as softer-than-expected U.S. inflation led to hopes the Federal Reserve could move to a smaller rate hike.

At 10:00 a.m. ET (1500 GMT), the Toronto Stock Exchange’s S&P/TSX Composite Index (.GSPTSE) was up 279.6 points, or 1.4%, at 20,299.3.

Expected inflation data showed that US consumer prices rose slightly in November, leading to the smallest inflation increase in a year.

Softer inflation data will give the Federal Reserve cover to raise interest rates as of Wednesday, its final meeting of the year.

“Today’s unexpected downside surprise has created a sudden high-risk reaction,” said Brandon Michaels, senior analyst at ABC Fund.

“Investors were extremely negative on inflation and the pending central bank monetary policy tightening.”

Rate-sensitive tech stocks ( .SPTTTK ) jumped 3.9%, while Shopify ( SHOP.TO ) was the top gainer, up 8.6 percent. The tech index posted its biggest one-day jump in more than a month.

The materials sector ( .GSPTTMT ), which includes precious and base metals, added to the upbeat sentiment as gold prices jumped against a weaker greenback, up 3.1%.

The energy sector ( .SPTTEN ) rose 2.9 percent on higher crude prices.

Canadian stocks rebounded quickly from October lows on hopes that the U.S. Fed and other major central banks could temper aggressive rate hikes on signs that inflation may be peaking.

Among individual stocks, Bank of Montreal ( BMO.TO ) fell 0.2% after announcing an offering of common shares.

Reporting by Shashwat Chauhan in Bengaluru; Edited by Anil D’Silva and Krishna Chandra Elluri

Our standards: The Thomson Reuters Trust Principles.

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