CANADA STOCKS-TSX notches biggest gain since September as oil jumps

Tue Nov 15, 2016 4:46pm EST
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(Adds portfolio manager quotes; updates prices)

* TSX closes up 157.65 points, or 1.08 percent, at 14,756.10

* Nine of the TSX's 10 main groups end higher

By Fergal Smith

TORONTO, Nov 15 (Reuters) - Canada's benchmark stock index on Tuesday notched its biggest gain since September, led by energy as oil jumped, while gold miners and defensive stocks pared some recent losses as investors weighed an uncertain outlook for U.S. economic policy.

Expectations that U.S. President-elect Donald Trump will cut taxes, increase spending and accelerate inflation have lifted assets including the U.S. dollar, bank stocks and industrial metals, and driven bond yields higher.

"The uncertainty that Trump brings to the picture meant that your most frothy asset class sells off and that for the longest time has been rates," said Ben Jang, portfolio manager at Nicola Wealth Management.

However, some sectors that benefit most from a low interest rate environment, including utilities, telecoms and consumer staples recovered some lost ground as the market reassessed the ease with which Trump will be able to deliver on his policies.

"People look at the policies and say that it is going to be hard ... to get infrastructure spending to the amount that Trump wants, it is going to be hard to come up with healthcare reform," Jang said.   Continued...