Canada’s main stock index rose on Friday as energy stocks rose and global sentiment improved after China unveiled measures to support the country’s economic growth.
At 9:42 am ET (13:42 GMT), the S&P / TSX composite index on the Toronto Stock Exchange rose 140.32 points, or 0.7%, to 20,322.24.
China has lowered its five-year debt prime rate – which affects mortgage prices – by 15 basis points on Friday, a sharp drop from expectations. The second cut this year aims to move an economy that has shrunk by the fresh COVID-19 lockdown.
“The key questions for today are whether the bulls can mount enough support to hold the market all day, and if the bears take a break today, will they be back next week?” Said Colin Siszinski, chief market strategist at SIA Asset Management.
“In other words, a bounce seems to have started but it’s not clear if it’s sustainable.”
The energy sector rose 1.3% as oil prices stabilized and European sanctions on Russian oil planned for a slight change in the week weighed on investors’ concerns about economic growth hitting demand.
The financial sector grew 0.9%, while the industrial sector grew 0.5%.
The benchmark index has risen 1% so far this week and was set to snap a seven-week losing streak as gains in resource-linked stocks helped offset the recent rally in global equities.
The materials sector, which includes precious and base metal miners and fertilizer companies, rose 0.2% as gold prices hit a one-week high as the dollar weakened. (Reporting by Amal S in Bangalore; Editing by Sriraj Kalluvilla)