CANADA STOCKS-TSX edges up after stumble on China rate hike

Tue Apr 5, 2011 11:05am EDT
 
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   * TSX rises 0.13 percent to 14,237.04
 * Six index sectors rise
 (Adds details)
 TORONTO, April 5 (Reuters) - Toronto's main stock index
edged higher after a soft start on Tuesday morning as commodity
issues resumed their recent march higher, taking an interest
rate hike in China in stride.
 The Chinese rate increase, the country's second this year, pulled down
mining stocks at the start of trade. The sector quickly recovered, however,
rising 0.44 percent at midmorning, even though the rate move cut into copper
prices.
 Spot gold was near a two-week high. [MET/L] [GOL/][ID:nL3E7F51LX]
 The index's energy sector was also higher as Libya's conflict, Middle East
unrest and Nigerian election delays kept Europe's benchmark crude elevated
despite the rate hike in China. U.S. crude was slightly lower.
 Top gainers included oil producer Canadian Natural Resources CNQ.TO, up
1.12 percent at C$48, and Goldcorp G.TO, up 1.14 percent at C$48.08.
Diversified miner Teck Resources TCKb.TO gained 0.3 percent to C$55.26.
 At 10:45 a.m. (1445 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 18.69 points, or 0.13
percent, at 14,237.04. Six of the index's 10 main sectors were
higher.
 The main index has risen more than 2 percent over the last
five sessions, which could set the stage for a pullback.
 "Markets have had a really strong run and now there could
be some headwinds," said Peter Chandler, senior vice-president
at Canaccord Wealth Management.
 "For a variety of reasons, there may be some pause in
economic activity, or the growth of it, that may make the market
have to digest what it's done before it can think about what it
wants to do next."
 He counted rising food and energy costs, the Chinese rate
hike, and slower auto production as some of the headwinds that may slow
consumer spending and business growth.
 U.S. data showed growth in the vast U.S. services sector
slowed last month and price pressures eased slightly, according
to the Institute for Supply Management, but overall activity
expanded for a 16th straight month. [ID:nN05188782]
 ($1=$0.07 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)