Toronto market hits 3-week high on US Dollar peak hopes

  • The TSX ends up 178.61 points, or 0.9%, at 19,097.91
  • Posts its highest closing level since October 5
  • Canopy Growth jumps 25.7%
  • Celestica shares rise nearly 16%

TORONTO, Oct 25 (Reuters) – Canada’s main stock index hit its highest closing level in nearly three weeks on Tuesday as investors welcomed the falling U.S. dollar and U.S. Treasury yields and helped by gains significant assets of Celestica Inc. (CLS.TO) and Canopy Growth Corp. (WEED.TO).

The Toronto Stock Exchange S&P/TSX Composite Index (.GSPTSE) ended up 178.61 points, or 0.9%, at 19,097.91, its third straight day of gains and its highest closing level since Oct. 5.

“These small pockets of strength we’re getting in the market right now are justifiable given how oversold the market is,” said Sid Mokhtari, chief market technician at CIBC Capital Markets.

Better-than-expected corporate earnings, a potential spike in the U.S. dollar and signs that the U.S. 10-year yield is in the final stages of its rise are also supportive for stocks, Mokhtari said.

Wall Street also ended higher and the greenback fell against a basket of major currencies, as weak economic data suggested the Federal Reserve’s aggressive policy is taking effect, while falling Treasury yields boosted sentiment. rally momentum.

Investors fear higher borrowing costs could push some major economies into recession.

Money markets expect the Bank of Canada to raise interest rates by three-quarters of a percentage point on Wednesday to a 14-year high of 4%.

The Toronto market’s healthcare sector rebounded 6.3%, as shares of cannabis producer Canopy Growth Corp jumped 25.7% on plans to form a holding company to accelerate the entry of the company in the United States.

Among other major players, Celestica Inc. shares rose nearly 16% after the electronics company reported third-quarter results that beat analysts’ estimates.

The technology sector rose 1.8%, while the materials group, which includes precious and base metal miners and fertilizer companies, added 1.3%.

Reporting by Fergal Smith; Additional reporting by Shashwat Chauhan in Bengaluru Editing by Alistair Bell

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Carol N. Valencia