TORONTO (Reuters) - Canada’s main stock index recorded its fourth straight session of gains on Tuesday with higher oil prices lifting shares of energy producers and the likelihood of new European Central Bank stimulus measures bolstering sentiment.
The ECB is considering buying corporate bonds on the secondary market and may decide on the matter as soon as December with a view to beginning purchases early next year, several sources familiar with the situation told Reuters.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 209.94 points, or 1.46 percent, at 14,547.71.
The benchmark TSX has rebounded 6.6 percent since reaching an eight-month low last week. It hit a one-week high on Tuesday.
“It’s really a stimulus-driven rally today,” said Youssef Zohny, portfolio manager at Stenner Investment Partners of Richardson GMP Ltd, which manages about C$28.3 billion in assets.
“We expect the market to be very volatile in the coming months, and we’ll see volatility both ways,” he said.
Still, Zohny expects the TSX to outperform the U.S. market.
All of the 10 main sectors on the index were higher on Tuesday.
The materials sector, which includes mining stocks, advanced 0.4 percent, supported by a rally in copper prices. Teck Resources Ltd TCKb.TO rose 3.1 percent to C$18.07, and First Quantum Minerals Ltd (FM.TO) was up 5.6 percent at C$19.80.
Canadian Pacific Railway Ltd (CP.TO) gained 1.3 percent to C$224.58. It reported higher third-quarter earnings and revenue but the results fell short of analysts’ expectations.
Editing by Jeffrey Benkoe; and Peter Galloway