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By Fergal Smith
TORONTO, Sept 3 (Reuters) – Canada’s main stock index rose
to a record high on Friday as higher commodity prices lifted
mining stocks and a disappointing U.S. jobs report reduced the
near-term risk of a stimulus taper by the Federal Reserve.
The Toronto Stock Exchange’s S&P/TSX composite index ended up 26.31 points, or 0.1%, at 20,821.43, a record
closing high. For the week, it was up 0.9%.
The U.S. dollar added to this week’s decline against
a basket of major currencies after a much weaker-than-expected
U.S. payrolls report that is likely to keep the Fed at bay in
scaling back its massive asset purchase program. “The weaker dollar could be helping to boost commodity
prices, especially gold,” said Colin Cieszynski, chief market
strategist at SIA Wealth Management.
Gold rallied 1% and copper was up 0.9%, while
the materials group , which includes precious and base
metals miners and fertilizer companies, added 1.9%, including a
13.8% jump in the shares of New Gold Inc .
Technology shares added to recent gains, ending up
0.1%.
“They tend to benefit from the easy-money party,” Cieszynski
said, referring to the Fed’s loose monetary policy stance.
The Bank of Canada is due to make an interest rate decision
next Wednesday, while it will be a shortened week for domestic
markets. The TSX is due to be closed on Monday for the Labour
Day holiday.
The energy sector gave back some of the previous
day’s sharp gains, ending 0.4% lower along with a pullback in
oil prices. U.S. crude oil futures settled down 1% at
$69.29 a barrel.
(Reporting by Fergal Smith; Additional reporting by Amal S in
Bengaluru; Editing by Sandra Maler)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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