Canada’s main stock index rose to three-month highs on Tuesday as material shares advanced on a pullback in dollar and energy companies gained on higher oil prices.
At 10:28 a.m. ET (1528 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 180.04 points, or 0.9%, at 20,157.17, hovering below its strongest level since late August.
The energy sector added 1.4% after top exporter Saudi Arabia said OPEC+ was sticking with output cuts, while materials sector rose 2.9% as prices of base and precious metals were supported by a weaker dollar.
Meanwhile, Canada’s domestic retail sales fell 0.5% in September due to lower sales at gasoline stations as well as food and beverage stores, although sales were seen rising 1.5% in October.
“There’s a lot of headwinds for the Canadian economy given the pace of interest rate hikes, so we expect it to further slowdown in the year ahead,” said Angelo Kourkafas, investment strategist at Edward Jones Investments.
“In October, however, it should reflect a reversal in gasoline prices and an offset by a resilient labor market.”
In the United States, the main indexes opened higher, with investors relieved by recent less-hawkish remarks from Federal Reserve policymakers.
“Multiple Fed speakers highlighted the message that we need to hike more, but at a slower pace. Looking at the backdrop, inflation has slowed down though one reading in October doesn’t necessarily mean a trend,” Kourkafas said.
Analysts are widely expecting a 50-basis point rate hike at the Fed’s meeting in December.
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