Canada’s main stock index inched higher on Friday, on track to mark its fifth straight session of gains, as gold miners and material stocks rallied.
At 10:10 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 22.55 points, or 0.11%, at 20,233.75.
Across the border, U.S stocks took a hit as remarks from some major U.S. banks such as JPMorgan Chase & Co and Bank of America added to concerns that the Federal Reserve’s aggressive monetary policy tightening has started taking a toll on economic growth.
“Canada is hanging in a little better because of the strength in the commodities. We’re seeing a nice move higher in gold and some of the other commodities,” said Greg Taylor, portfolio manager at Purpose Investments.
The benchmark index triggered a ‘golden cross,’ where the 50-day moving average surpasses the 200-day moving average. It is a technical indicator of a major trend change for the TSX, and indicative of a new bull market for Canadian stocks.
The commodity-heavy index is set to gain 2.2% on the week, with easing U.S. inflation and hopes of smaller rate hikes from the Fed bolstering the benchmark to a second week of gains.
Gold miners led gains, up 1% as spot gold prices climbed to eight-month high levels.
The broader materials sector, which includes precious and base metals miners and fertilizer companies gained 0.4%.
In company news, Cogeco Communications tanked 7.5% after trimming its annual revenue outlook on a lower than expected customer base in Ohio.
Miner Lundin Mining Corp lost 5.1% after the company announced 2022 production results and provided 2023 guidance.
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