-+undefined NaN%
-+undefined NaN%
-+undefined NaN%

CANADA STOCKS-TSX posts biggest gain in 8 weeks as wage pressures ease

Reuters · 01/06/2023 16:43
CANADA STOCKS-TSX posts biggest gain in 8 weeks as wage pressures ease

Adds details throughout, updates prices to close

TSX ends up 307.67 points, or 1.6%, at 19,814.51

Posts its biggest gain since Nov. 10

Canada adds 104,000 jobs in December

Energy sector rallies 2.5%

By Fergal Smith

- Canada's main stock index on Friday its biggest advance in two months as investors welcomed data showing that wage pressures are cooling both domestically and in the United States.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended 307.67 points up, or 1.6%, at 19,814.51, its biggest gain since Nov. 10 and its highest closing level since Dec. 14. For the week, the index was up 2.2%.

"The market is in on the fall in wage growth both in the U.S. and Canada, which suggests that some of the inflation pressures could be weakening," said Angelo Kourkafas, investment strategist at Edward Jones Investments.

"As long as we can get some slowdown in wage growth while the economy continues to add jobs at a solid pace, it provides some hope that even though the path for a soft landing is , it is potentially achievable."

Canada's economy added 104,000 jobs in December, much more than expected, while growth in the average hourly wage for permanent employees slowed to an annual rate of 5.2% from 5.4%.

Wall Street's main indexes also rallied as U.S. data showed that wages cooled and services activity contracted in December, easing worries over the Federal Reserve's rate-hike trajectory.

All 10 of the Toronto market's major sectors gained ground, led by a 2.5% advance for the energy sector, clawing back some of this week's decline.

The materials group, which includes precious and base metals miners and fertilizer companies, added 1.7% as gold prices climbed to seven-month highs, supported by a sharp drop in U.S. Treasury yields and losses for the U.S. dollar .DXY against a basket of major currencies.

Heavily weighted financials rose 1.1% and industrials ended up 2.1%.

(Reporting by Fergal Smith; Additional reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Sandra Maler)

((fergal.smith@thomsonreuters.com; +1 647 480 7446;))