TSX extends gains on commodity boost, US shutdown hopes

Kitco Media
By Reuters
Published:
Updated:
Reuters
TSX extends gains on commodity boost, US shutdown hopes teaser image

Nov 12 (Reuters) - Canada's main stock index advanced on Wednesday, set for its fourth consecutive session of gains, buoyed by higher commodity prices and investor hopes of a swift resolution to the U.S. government shutdown.

At 09:48 a.m. ET, Toronto's S&P/TSX composite index (.GSPTSE), was up 0.6% at 30,590.54 points — its highest level since October 16.

Members of the U.S. House of Representatives headed back to Washington where they could soon vote to end the government shutdown.

ADP's Tuesday update on preliminary payroll figures showed continued weakness in the labor market, with private employers shedding an average of 11,250 jobs weekly.

Global markets, deprived of key economic data during the U.S. shutdown, are also weighing mixed corporate earnings.

"The market will be looking for signals in the labor and inflation data to extrapolate what direction the Fed will go in and for how long," said Michael Landsberg, chief investment officer, Landsberg Bennett Private Wealth Management.

Traders are increasing bets on further easing from the U.S. central bank. Fed funds futures are pricing an implied 67% probability of a 25-basis-point cut at the next meeting on December 10, compared with a 62% chance a day earlier, according to the CME Group's FedWatch tool.

The gold subindex (.SPTTGD),  rose 2.7% and the index of metal miners (.GSPTTMT),  climbed 2.6% on Wednesday, as prices of the two metals edged higher on hopes of immediate U.S shutdown resolution.

In corporate news, retailer Loblaw (L.TO), raised its annual profit forecast after beating third-quarter profit estimates. Shares were up 2.2%.

Miner Hudbay (HBM.TO), missed third-quarter estimates for profit and revenue.

Reporting by Avinash P and Pranav Kashyap in Bengaluru; Editing by Sahal Muhammed

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.