Canada’s main stock index rose on Thursday, boosted by strong gains in the energy and material sectors.
At 11:23 a.m. ET, the Toronto Stock Exchange’s S&P/TSX Composite Index 130.04 points, or 0.86 per cent, to 15,299.98.
Energy stocks were up 2.1 per cent led by a 3.7-per-cent jump from Cenovus Energy Inc. Encana Corp. rose 3.3 per cent, while Canadian Natural Resources Ltd. and Tourmaline Oil Corp. increased 2.8 per cent.
Materials stocks sat up 1.2 per cent with First Quantum Minerals Ltd. rising 5.3 per cent. Methanex Corp. rose 4.3 per cent, while Canfor Corp. increased 4 per cent.
A report showed economic growth data unexpectedly slowed in January in a clear sign that first-quarter growth is likely to be weaker than the Bank of Canada had predicted.
Canada’s growth dwindled 0.1 per cent last month, while analysts were expecting a rise of 0.1 per cent after a revised 0.2-per-cent gain in December.
“This reinforces the point that there is little urgency to hike rates again,” said Doug Porter, chief economist at BMO Financial Group.
U.S. stocks jumped on Thursday as technology shares bounced back from a sharp selloff ahead of a long weekend that marks the end of a turbulent quarter for Wall Street.
Shares of Facebook, Apple, Alphabet and Microsoft were up between 1 per cent and 4 percent, driving a 1.8-per-cent gain in the S&P technology index .
However, the S&P 500 and the Dow were on track to log their worst quarter in more than two years on concerns over a global trade war and interest rate hikes, as well as a rout in technology stocks caused by Facebook Inc’s data scandal.
“People are worried about rising interest rates. That has led to market volatility and we’ll see more of that,” said Mark Esposito, president of Esposito Securities LLC.
Global investors have cut their equity exposure to a four-month low in March, while reducing their holdings of U.S. stocks to the lowest in nearly two years, spooked by trade tensions and the rout in technology sector.
The Dow was up 1.19 per cent at 24,131.76, the S&P 500 gained 1.18 per cent to 2,635.85 and the Nasdaq Composite rose 1.37 per cent at 7,044.63.
Trading volumes were light, ahead of the long Easter weekend.
Economic data released on Thursday did little to change the expectations of interest rate hikes.
Core personal consumption expenditures price index, the Federal Reserve’s favored inflation gauge, rose 1.6 per cent on an annualized basis through February, in line with economists’ expectations.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.2 per cent last month after a similar gain in January.
Amazon fell more than 1 per cent after President Donald Trump blasted the company with a list of complaints, a day after news website Axios reported that Trump wants to rein in the company’s growing power using federal antitrust laws.
GameStop shares fell 10.8 per cent after the company provided disappointing full-year sales forecast.