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TSX ends up 0.5%, at 20,564.49
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Posts its highest closing level since March 3
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Materials group rallies 1.6%
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Technology adds 0.7%
(Adds details on stocks in eighth paragraph)
By Fergal Smith
April 13 (Reuters) - Canada's main stock index rose on
Thursday to its highest closing level in nearly six weeks,
buoyed by strength in the shares of gold miners, while sentiment
was also lifted by gains on Wall Street following signs of
cooling inflation.
The Toronto Stock Exchange's S&P/TSX composite index ended up 110.17 points, or 0.5%, at 20,564.49, its
fifth straight day of gains and its highest closing level since
March 3.
Wall Street indexes rose as U.S. data showing moderating
producer prices and a jump in weekly jobless claims supported
bets the Federal Reserve could shift to easing interest rates by
the end of 2023 following an expected end to its tightening
cycle in the coming months.
"We've had some good inflation data recently in the U.S. and
in Canada as well," said Scott Blair, chief investment officer
at CWB Wealth.
On Wednesday, the Bank of Canada left its benchmark interest
rate on hold at 4.50% for a second straight meeting, expecting
CPI inflation to fall quickly to around 3% in the middle of this
year.
The materials sector, which includes precious and base metals miners and fertilizer companies, advanced 1.6% on Thursday to its highest level since May 2022 as the price of gold rose to a one-year high. "Gold prices are surging here as cooling PPI data and rising jobless claims bolsters Fed rate cut bets," Edward Moya, senior market analyst at OANDA, said in a note. Barrick Gold Corp shares advanced 1.4% even as the company reported first-quarter gold production fell 15% sequentially, while shares of Hudbay Minerals Inc overcame earlier declines to end up 2.4%. The miner said it would buy peer Copper Mountain Mining Corp . The rate-sensitive technology sector was also a standout, rising 0.7%, while heavily-weighted financials advanced 0.5%. (Reporting by Fergal Smith; Additional reporting by Shristi Achar A in Bengaluru; Editing by Sriraj Kalluvila and Chris Reese)
