CANADA STOCKS-Energy stocks help TSX rise despite U.S. jobs data surprise

February 03, 2023 10:47 AM EST | By Reuters
Follow us on Google News:

(Updates prices, adds comments and details)

By Shashwat Chauhan

Feb 3 (Reuters) - Canada's main stock index climbed on Friday, as a jump in oil prices propped up energy stocks, while upbeat corporate earnings also helped keep the index in the green.

At 10:27 a.m. ET (1527 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 52.86 points, or 0.25%, at 20,793.3, on track to post its fifth straight weekly gain.

Energy stocks took an early lead, rising 2.6%, helped by a jump in crude prices, which gained more than $1 a barrel.

Methanol producer


and software company

OpenText Corp

gained 7.3% and 4.5% respectively after reporting better-than-expected quarterly results.

A surge in OpenText helped Canada's technology sector stave off losses, unlike the technology-heavy U.S. Nasdaq, which fell more than 1% during early trading.

On the flipside, the materials sector, which includes precious and base metal mining companies, edged 1.3% lower as precious metal prices fell against a stronger dollar.

The greenback gained strength after data showed U.S. job growth

accelerated sharply

in January amid a persistently resilient labor market.

"Initially, the market took that as being a little bit hawkish in terms of the Fed... the stocks have bounced back quite significantly since then," said Colin Cieszynski, chief market strategist at SIA Wealth Management.

"People were more concerned about what does that mean about the Fed, but the flip side of which is that it's indicative that the economy is holding up pretty well, which is good for corporate earnings."

The U.S. central bank


its overnight lending rate by expected 25-basis points on Wednesday, with accompanying commentary by Chair Jerome Powell largely perceived as dovish.

Among individual stocks, Canada Goose Holdings gained 7.8% after falling as much as 24% in the previous session, when the luxury goods maker


its full-year forecasts.

Silver miners such as Endeavour Silver and SilverCrest Metals were among top losers. (Reporting by Shashwat Chauhan in Bengaluru; Editing by Krishna Chandra Eluri and Maju Samuel)


The above content is directly sourced from Reuters under a contractual arrangement. The content is being provided as a convenience and for informational purposes only; and does not constitute an endorsement or approval by Kalkine Media of any of the products, services, or opinions of the organization or individual. The user is apprised that Kalkine Media bears no responsibility for the accuracy, legality, or content of Reuters, any external sites, or for that of subsequent links. The user is requested to contact Reuters directly for answers to questions regarding the content. Please note that Kalkine Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK