Canada’s main stock index rose for a seventh consecutive session on Monday, lifted by energy, financial and technology stocks, while traders looked ahead to a week packed with key economic data including consumer price inflation.
By 10:05 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 38.76 points, or 0.19%, at 20,398.86 - a six-week high. Canada’s annual inflation rate eased to 6.8% in November as gasoline prices rose more slowly. Investors will focus on December inflation data due on Tuesday, with economists polled by Reuters forecasting a 6.4% rise on an annual basis.
“We’re going to have the CPI report, so that’ll be crucial, giving us an indication how the fight against inflation is going,” said Allan Small, senior investment advisor at Allan Small Financial Group.
Across the border, U.S markets were closed for the Martin Luther King Day holiday, contributing to low trade volumes.
The energy sector, financial and technology stocks gained between 0.2% and 0.4%.
Among the laggards, gold miners were down 0.2%, with spot gold prices dipping.
Canadian dollar steadies ahead of Bank of Canada survey
Meanwhile, Canadian factory sales were unexpectedly flat in November month on month, as higher sales in motor vehicles and fabricated metals were offset by lower sales in chemicals and petroleum and coal products.
The commodity-heavy index has gained nearly 5% since the start of the year compared to the 4.1% gain in the U.S. benchmark S&P 500 index, even triggering a “golden cross” on Friday, suggesting bullish momentum.
In company news, Mullen Group fell 6.6% after the logistics provider said its revenue will reach $500 million although profit margins softened due to a slowdown in global trade and consumer spending.
Investment management company Colliers International Group gained 3.3% after Scotiabank upgraded the stock to “outperform”.
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