China data helps drive TSX higher

Tue Jun 3, 2014 5:46pm EDT
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By John Tilak

(Reuters) - Canada's benchmark stock index rose for a third straight session on Tuesday, driven by gains in the share prices of energy producers and financial companies, as positive economic data from China boosted sentiment.

Surveys showed that China's factory and services sectors in May reached their strongest levels in months as demand rebounded.

While a drop in copper prices weighed on some mining stocks, the energy sector benefited from an advance in the price of U.S. crude oil.

Investors also looked ahead to the release of the closely-watched monthly U.S. jobs report on Friday to see how growth in the world's biggest economy was shaping up.

"There's really no bad news out there. Even the concerns about China are easing a little bit, with the stimulus push by the policymakers there," said Marcus Xu, portfolio manager at MY Capital Management Corp in Vancouver.

"We're in a bit of a trading range here," he added. "Every time the market makes a new high, it had to revert back a little. But I think the market will slowly trend higher," he said.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 53.93 points, or 0.37 percent, at 14,734.69. The index is up more than 8 percent so far this year.

"We believe that the Canadian stock market will end the year higher than where it is right now," said Irwin Michael, portfolio manager at ABC Funds, who expects much of the growth to come from natural resources sectors.   Continued...

A sign displaying TSX information is seen in Toronto November 20, 2008. REUTERS/Mark Blinch