Yahoo Finance CANADA STOCKS-Toronto shares reach 18-month high ahead of Christmas break
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TSX up 0.7%
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TFI International up after acquiring Daseke for $1.1 bln
(There will be no Canada equities report on Dec. 25, 26 on account of Christmas and Boxing Day; Reuters will resume coverage on Dec. 27)
By Shashwat Chauhan
Dec 22 (Reuters) -
Canada's main stock index advanced on Friday, with materials and real estate shares leading gains, setting the benchmark index up for its second straight weekly increase as it heads into the Christmas break.
At 9:43 a.m. ET (1443 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 151.33 points, or 0.73%, at 20,917.06, touching its highest level since June 2022.
The materials sector, which houses Canada's major mining firms, advanced 2.0%, with precious metal miners leading the charge on rising precious metal prices.
Real estate and industrials were also amongst top gainers, rising 1.0% and 0.7%, respectively.
On the data front, Canada's economy was essentially unchanged for the third consecutive month in October, missing growth forecasts, but gross domestic product likely edged up in November.
In the United States, annual inflation slowed further below 3% in November, and underlying price pressures continued to abate, which could cement financial market expectations for an interest rate cut next March.
"It's tempting just to say these data are all consistent with the soft landing story and leave it at that, but if the recent inflation trends continue, as we expect, the Fed likely will face the risk of an inflation undershoot to target by late next or early 2025," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.
Traders held the view that the Fed will start cutting interest rates in March.
The benchmark Canadian index is on track to log its second straight week of gains as global markets rallied on continued optimism over the Fed's dovish pivot last week.
The Canadian markets will be shut on December 25-26 on account of Christmas and Boxing Day holidays.
Among individual stocks, logistics firm TFI International gained 5.2% after it said it had agreed to acquire Daseke, in a deal valued at about $1.1 billion. (Reporting by Shashwat Chauhan in Bengaluru;Editing by Ravi Prakash Kumar)
