Cooper Metals – CANADA STOCKS-TSX notches biggest gain in 4 months on U.S. debt-ceiling relief
(New throughout, updates prices, market activity and investor comments)
* TSX ends up 224.55 points, or 1.1%, at 20,416.21
* Posts biggest gain since June 1
* Technology stocks climb 2.7%; energy gains 2.4%
* Price of U.S. oil settles 1.1% higher; copper gains 2.4%
TORONTO, Oct 7 (Reuters) – Canada’s main stock index on Thursday rallied by the most in four months, led by technology and energy stocks, as global sentiment was lifted by hopes that Washington could resolve its debt-ceiling standoff.
The Toronto Stock Exchange’s S&P/TSX composite index ended up 224.55 points, or 1.1%, at 20,416.21, its biggest gain since June 1 and the highest closing level since Sept. 27.
Gains for the index came as a temporary truce in the debt-ceiling standoff in the U.S. Congress relieved concerns of a possible government debt default this month, boosting Wall Street.
“That’s one near-term risk factor and certainly a cause of volatility and noise, that looks like it will at least be punted forward by a couple of months,” said Chhad Aul, vice-president, portfolio management, Sun Life Global Investments.
Technology stocks gained 2.7%, their third session of gains, helped by a 3.4% advance for Shopify Inc, the company with the largest market capitalization on the Toronto market.
Sectors that tend to particularly benefit from economic recovery, also gained ground, with energy climbing 2.4% as oil prices rose and the heavily-weighted financial services sector up 0.7%.
We expect to see more shifting of positions into those cyclical sectors in global markets “as we proceed through this quarter,” Aul said.
Canada’s jobs report for September is due on Friday, which could offer clues on the strength of the domestic economy.
U.S. crude oil futures settled 1.1% higher at $78.30 a barrel as the market deemed it unlikely that the United States would release emergency crude reserves or ban exports to ease tight supplies, while copper futures were up 2.4%.
The materials group, which includes precious and base metals miners and fertilizer companies, added 1.3%. (Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by David Gregorio)