TSX rises, led by gold miners after weak U.S. data

Thu Sep 1, 2016 5:41pm EDT
 
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index rose on Thursday, led by gold mining stocks after weak U.S. manufacturing data tempered expectations for Federal Reserve interest hikes.

Gold rebounded from a two-month low as the U.S. dollar fell on manufacturing data that raised doubts about the economy's strength.

"Sloppy data" reduces expectations for a Fed rate hike in September, said Diana Avigdor, portfolio manager and head of trading at Barometer Capital Management.

U.S. jobs data is due on Friday, which may offer clues on the outlook for U.S. interest rates.

Gold miners gained after losing significant ground in August, with Barrick Gold adding 4.6 percent to C$23.31.

The global gold mining sub-sector had lost some 20 percent of its value in August, while spot gold was down around 3 percent over the same period.

The Toronto Stock Exchange's S&P/TSX composite index closed up 85.96 points, or 0.59 percent, at 14,683.91.

Eight of the index's 10 main groups ended higher.   Continued...

 
A Bay Street sign, the main street in the financial district is seen in Toronto, January 28, 2013.  REUTERS/Mark Blinch