Canada’s main stock index rose on Friday, led by the materials sector as gold prices surged to a one-month high, a day after the index posted its worst day since September 2016 on fears of a global trade war.
Fears of retaliatory trade tariffs sent investors scrambling for safe assets such as gold, lifting stocks of miners Barrick Gold Corp and Goldcorp by more than two per cent.
The financial sector was down nearly ten points after data showed inflation jumped to a three-year high in February, raising the prospect of an interest rate hike.
The Bank of Canada has a 2.0 per cent target for inflation, and has raised interest rates three times since July 2017, with markets expecting another hike by this July.
“It’s (inflation) slightly above two per cent, and we haven’t seen much of that in recent years. It’s not like inflation is at a worrisome level, but it also can’t be used as a reason for outright caution by the Bank of Canada,” said Doug Porter, chief economist, BMO Capital Markets
At 10:10 a.m. ET, the Toronto Stock Exchange’s S&P/TSX Composite Index rose 12.04 points, or 0.08 per cent, to 15 411.97.
The TSX posted two new 52-week highs and five new lows. Across all Canadian issues there were four new 52-week highs and 21 new lows.
The top percentage gainer on the TSX was Canopy Growth Co, which rose 6.2 per cent, while the largest decliner was Ivanhoe Mines, down 2.7 per cent.
Among the most active Canadian stocks by volume were Aurora Cannabis, up 5.6 per cent to $10.17; Canopy Growth Co, up 6.2 per cent to $33.65.
Volume on the TSX index was 42.73 million shares, while the total volume on Friday was 62.40 million shares. (Reuters)
