TSX rebounds as oil rallies, led by banks, energy stocks
By Fergal Smith
TORONTO (Reuters) - Canada's main stock index rebounded on Friday after five days of losses, led by banks and energy stocks as crude oil prices rallied and after U.S. retail sales data offered encouragement on economic growth.
Relative calm returned to financial markets after a week of turmoil in which investors worried about the impact of negative interest rates on banking profits.
U.S. consumer spending appeared to have regained its momentum in January, supporting the possibility of Federal Reserve rate hikes this year.
It was a "risk trade back on" day after markets suffered "a bit of a beating across the board," said Sadiq Adatia, chief investment officer at Sun Life Global Investments.
Still, the index fell 3 percent for the week, having hit a three-week low on Thursday as disappointing corporate earnings added to broad investor unease about the global economy.
Cenovus Energy Inc (CVE.TO: Quote) rose 4 percent to C$14.51. The oil producer said it may sell up to $5 billion of stock, debt or other securities, a day after it announced a dividend cut, as the company shores up its balance sheet amid a slump in oil prices.
The overall energy group rose 3.3 percent as crude oil prices rallied on prospects of a coordinated production cut. It included a 3.9 percent rise in the shares of Suncor Energy Inc (SU.TO: Quote) to C$30.57.
U.S. crude CLc1 prices settled at $29.44 a barrel, up 12.32 percent. Continued...