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TSX ends up 0.7%, at 19,654.92
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Canada's annual inflation rate slows to 5.2%
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Energy rises 3.2%
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Financials gain 1.2%
(Adds investor quotes and details on activity, updates prices)
By Fergal Smith
March 21(Reuters) - Canada's benchmark stock index rose
on Tuesday to its highest closing level in one week, helped by
gains in energy and financial shares after domestic data showed
consumer prices easing more than expected in February.
The Toronto Stock Exchange's S&P/TSX composite index ended up 135.49 points, or 0.7%, at 19,654.92, its
highest closing level since March 14, preliminary data showed.
Canada's annual inflation rate slowed more than expected in
February to 5.2%, its lowest level in 13 months, backing up the
Bank of Canada's plans to hold off on further interest rates
hikes.
If inflation is falling in Canada, "it's only a matter of
time for it to continue to fall in the U.S.," said Barry
Schwartz, portfolio manager at Baskin Financial Services.
Wall Street also advanced as widespread fears over liquidity in the banking sector subsided and investors turned their focus to the Federal Reserve, which has convened for its much-anticipated two-day policy meeting. "We went into the weekend concerned about our banking system," Schwartz said. "You can tell from the action of some of the bank stocks at least that confidence is slowly coming back." Heavily-weighted financials rose 1.2%, while energy added 3.2% as the price of oil settled 2.5% higher at $69.33 a barrel. (Reporting Fergal Smith; Additional reporting by Johann M Cherian in Bengaluru; Editing by Pooja Desai and Jonathan Oatis)
