TORONTO (Reuters) - Canada’s main stock index rose on Tuesday as energy stocks pushed higher with a jump in oil prices, while financial stocks pulled back after a sharp rally following the shock U.S. presidential election victory of Donald Trump.
Expectations that Trump’s administration 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 most influential gainers on the Canadian index included its biggest energy producers, with Suncor Energy Inc SU.TO rising 2.5 percent to C$40.77 and Canadian Natural Resources Ltd CNQ.TO advancing 2.4 percent to C$42.76. Encana Corp ECA.TO added 2.4 percent to C$42.76.
The energy group climbed 3.1 percent as oil prices bounced back from multi-month lows on expectations that OPEC will agree later this month to cut production to reduce a crude glut. [O/R]
The financials group slipped 0.7 percent as a rally in global bond yields paused, with Toronto-Dominion Bank TD.TO down 0.7 percent to C$62.51 and Bank of Nova Scotia BNS.TO losing 0.9 percent to C$69.24.
Insurer Manulife Financial Corp MFC.TO declined 1.5 percent to C$22.82 after four days of sharp gains took the stock to its highest since August 2015.
At 10:10 a.m. EDT (1510 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 55.44 points, or 0.38 percent, to 14,653.89.
All of the index’s 10 main groups except financials were in positive territory, with advancers outnumbering decliners by a 2.8-to-1 ratio.
Shares in Valeant Pharmaceuticals International Inc VRX.TO declined 2.3 percent to C$23.24. Its chief executive said it has received offers for some core assets.
The materials group, which includes precious and base metals miners and fertilizer companies, added 0.7 percent as gold rebounded from a three-day losing streak while investors sought more detail on the economic policies of President-elect Trump. [MET/L][GOL/]
Canadian home prices rose in October as continued strength in Ontario, the most populous province, offset the first decline in Vancouver in almost two years, the Teranet-National Bank Composite House Price Index showed.
Reporting by Alastair Sharp; Editing by Meredith Mazzilli
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