TSX nears three-month high, posts weekly gain

Fri Aug 16, 2013 5:15pm EDT
 
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By John Tilak

TORONTO (Reuters) - Canada's main stock index advanced to its highest level in close to three months on Friday as supply worries drove gains in the price of oil and in the shares of energy companies, offsetting declines in mining stocks.

The Toronto stock market index also rose 1.6 percent for the week.

After trailing U.S. stocks all year, the TSX .GSPTSE has managed to outperform the S&P 500 .SPX in August to date as a rebound in commodity prices begins to take hold.

A recent wave of positive economic data from China, Europe and the United States has supported the case for a strong global recovery, which is positive for the export-focused Canadian market.

"The sentiment toward China is starting to improve, the sentiment toward Europe is starting to improve," said Colin Cieszynski, senior market analyst at CMC Markets Canada. "And that's helping underpin commodities, which is helping the Canadian stocks to recover, finally."

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 32.40 points, or 0.26 percent, at 12,736.92, after going as high as 12,799.99, touching its highest intraday level since May 22.

A report on Friday showed U.S. consumers, bracing for higher interest rates and slightly slower economic growth, were a bit less optimistic in August as sentiment fell from last month's six-year high.

Investors bracing for the U.S. Federal Reserve to begin tightening monetary policy were dissecting every piece of economic data to try to figure out when the Fed will start to move.   Continued...

 
A Toronto Stock Exchange (TSX) logo is seen in Toronto in this November 9, 2007 file photo. REUTERS/Mark Blinch