Dec 27 (Reuters) - Canada's main stock index was on track for a three-day winning streak on Wednesday, led by gains in energy and healthcare stocks, while investors grew optimistic that major central banks could begin cutting interest rates in the upcoming year.
At 10:08 a.m. ET (15:08 GMT), the Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) was up 128.69 points, or 0.62%, at 21,009.88, hovering at eighteen-month high levels.
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Top gainer healthcare sector (.GSPTTHC) added 2.6%, touching its highest level in over three months as cannabis stock Tilray Brands jumped 6.6%.
The energy sector (.SPTTEN) gained 1.3% despite a downturn in crude prices.
The materials sector (.GSPTTMT), which includes metals miners and fertilizer companies, added 0.3% on higher prices of most base metals after data showed manufacturing activity in top consumer China improved last month, while a weak U.S. dollar also lent support to the market.
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"With the lack of confidence in authority, China needs more than a couple of good data points to convince investors and the world that things are on the right track," said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.
"Chinese government is not totally on the investor side, they do have their agenda."
The Canadian economy's soft patch has continued in the last few months and supports investor bets of an interest rate cut by the Bank of Canada in the first quarter of next year.
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Trading has been thin so far as no company reported financial results in the day and traders return from an extended Christmas break, with only a few trading days left in 2023.
Shares of crypto firms Bitfarms (BITF.TO) and Hut 8 Mining soared 11.9% and 8.1%, respectively, as Bitcoin climbed over 1.5%.
The broader information technology (.SPTTTK) index gained 0.7%, while also being set for the highest sectoral gain in the year on the TSX, adding over 55% in 2023.
Reporting by Khushi Singh in Bengaluru;Editing by Ravi Prakash Kumar
