TSX notches record high after China stimulus hopes lift sentiment

TSX notches record high after China stimulus hopes lift sentiment/Reuters

Reuters | September 26, 2024 | 11:05 PM IST | Breaking News | Follow on Google News

TSX notches record high after China stimulus hopes lift sentiment

TSX notches record high after China stimulus hopes lift sentiment

Sept 26 (Reuters) – Canada’s main stock index hit a record high on Thursday, lifted by consumer discretionary and mining stocks, as China’s assurance of more stimulus lifted investor sentiment.

The Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE), opens new tab was up 125.44 points, or 0.52%, at 24,031.32, and was set for its third record high session for this week.

China on Thursday vowed “necessary fiscal spending” to meet its growth target and announced plans to issue special sovereign bonds worth about 2 trillion yuan ($284.43 billion) this year, following the central bank’s policy easing earlier in the week.

The materials sector (.GSPTTMT), opens new tab rose 1.4%, tracking record-high gold prices, near 12-year high silver prices and near 16-week high copper prices, boosted by hopes of stronger metals demand from China.

“China is obviously a big industrial consumer of things like copper and metals,” and the stimulus is positive “for global economic growth, Chinese economic growth and by extension demand for Canadian resources,” said Brian Madden, chief investment officer at First Avenue Investment Counsel.

The consumer discretionary (.GSPTTCD), opens new tab sector led the sectoral gains, rising 1.6%, supported by the shares of auto parts supplier Magna International (MG.TO), opens new tab.

The energy sector (.SPTTEN), opens new tab lagged its peers, falling 1.9%, as it tracked slipping oil prices on prospects of Saudi Arabia raising output and OPEC+ plans to increase output in December.

On the data front, U.S. weekly jobless claims unexpectedly fell last week, pointing to a still low level of layoffs and easing fears over the labor market’s health, while the final reading of gross domestic product showed that the economy grew 3% in the second quarter.

Canada’s technology sector (.SPTTTK)
, opens new tab was among the top gainers, rising 1.2%, and in sync with Wall Street’s tech-heavy Nasdaq, which increased 1%, following Micron Technology’s (MU.O)
, opens new tab upbeat first-quarter forecast.

Reuters