April 5, 2011 / 3:07 PM / 8 years ago

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

   * 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)                                        

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below