April 1, 2014 / 11:51 AM / 4 years ago

TSX advances as Fed hopes drive broad gains

TORONTO (Reuters) - Canada’s main stock index rose on Tuesday, continuing to get support from Monday’s U.S. Federal Reserve assertion of its willingness to keep on buttressing the U.S. economy.

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

Fed Chair Janet Yellen defended the central bank’s easy monetary policy on Monday, indicating that stimulative measures to boost the U.S. economy will be necessary for some time to come.

Her remarks rallied global markets and helped the Canadian benchmark stock index record a ninth straight monthly gain in the previous session.

“We’re picking up from where we left off yesterday,” said Colin Cieszynski, senior market analyst at CMC Markets Canada. “The markets have moved into sideways trading ranges and are climbing within that.”

After digesting mixed signals about the state of global manufacturing, investors are awaiting a wave of economic data later this week, including the monthly U.S. nonfarm payrolls report on Friday.

“We’re expecting to see some fairly robust employment growth, and it does look like things are starting to improve again coming out of the winter,” Cieszynski said. “There’s some potential for positive surprises.”

He said he expects strengthening demand for commodities to help support the Canadian equity market this year.

The Toronto Stock Exchange’s S&P/TSX composite index was up 33.62 points, or 0.23 percent, at 14,368.93. Eight of the 10 main sectors on the index were higher.

Financials, the index’s most heavily weighted sector, were up slightly. Royal Bank of Canada climbed 0.3 percent to C$73.14, and Bank of Montreal gained 0.4 percent to C$74.25.

Industrial shares gained 0.6 percent, with Air Canada jumping 3.8 percent to C$5.74, and Bombardier Inc adding 1.2 percent to C$4.16.

The healthcare sector advanced 0.6 percent, supported by a 2 percent rise in Valeant Pharmaceuticals International Inc to C$148.35.

Editing by Peter Galloway

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