Canada's main stock index rose on Friday, tracking stronger crude and gold prices even as global equity markets came under pressure after alarming US inflation data raised fears of a more hawkish Federal Reserve.
At 09:54 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 74.02 points, or 0.34%, at 21,605.74. The TSX is set to gain 1.2% this week, its third straight weekly rise.
Markets went into a tailspin on Thursday after St. Louis Federal Reserve President James Bullard said he had become "dramatically" more hawkish in light of the hottest US inflation reading in nearly 40 years, and wants a full percentage point of interest rate hikes over the next three central bank policy meetings.
Market gyrations will likely continue as unnerved investors digest central banks' hawkish pivot, as well as the impact on both the economy and earnings, said Candice Bangsund, vice president and portfolio manager, global asset allocation, at Fiera Capital Corporation.
Auto parts maker Magna International slipped 2.8% after posting a 13.7% fall in quarterly revenue, hammered by semiconductor shortages.
"We expect Canadian equities to outperform in the reflationary environment of rising commodity prices, accelerating inflation, and higher interest rates that should bode well for TSX earnings momentum," Bangsund added.
Enbridge Inc firmed 1% after announcing a 3.7% jump in fourth-quarter profit, as a recovery in fuel demand boosted the Canadian pipeline operator's transportation volumes.
Oil prices advanced after the International Energy Agency said oil markets were tight, but were still headed for weekly losses on inflation worries and US-Iran talks which could led to lifting of sanctions on Iranian oil and ease global supply tightness.
The energy sector climbed 2.0% as US crude prices rose 1.2% a barrel, while Brent crude added 1.1%.
Gold prices too inched higher, trading below a two-week peak hit in the previous session on bets of more aggressive Fed rate hikes.
The financials sector gained 0.1%, while the industrials sector fell 0.1%
Highlights
The TSX posted six new 52-week highs and no new low.
Across Canadian issues, there were 22 new 52-week highs and 19 new lows, with total volume of 47.62 million shares.