Australia markets open in 7 hours 36 minutes

    -1.70 (-0.02%)

    -0.0003 (-0.04%)
  • ASX 200

    +0.10 (+0.00%)
  • OIL

    +1.48 (+1.79%)
  • GOLD

    +11.20 (+0.63%)

    -2,430.34 (-2.94%)
  • CMC Crypto 200

    -49.69 (-3.31%)

CANADA STOCKS-TSX extends rebound as investors adjust to Fed tapering prospects

  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

* TSX ends up 0.3%

* Energy gains 2.8%; financials end up 1%

* Canadian retail sales likely rose 2.1% in August

By Fergal Smith

TORONTO, Sept 23 (Reuters) - Canada's main stock index rose for a third day on Thursday as investors moved their focus past major event risks that weighed on the market earlier in the week, with energy and financial shares leading the way.

The Toronto Stock Exchange's S&P/TSX composite index ended up 60.44 points, or 0.3%, at 20,461.93, adding to gains on Tuesday and Wednesday. On Monday, the index hit a one-month low of 19,982.19.

"Now that we are on the path of Fed tapering, now that it is clear that Evergrande will default, the market can move on from worrying about those things," said Joseph Abramson, co-chief investment officer at Northland Wealth Management.

It's a case of "sell the rumor, buy the news," Abramson added, flipping the market adage.

The Federal Reserve said on Wednesday it will likely begin reducing its monthly bond purchases as soon as November and signaled interest rate increases may follow more quickly than expected.

Shares of debt-laden property group China Evergrande jumped 18% ahead of a key debt payment deadline. Investors have worried that the group's distress could spill into the broader economy.

The energy group rose 2.8%, helped by higher oil prices. U.S. crude oil futures settled up 1.5% at $73.30 a barrel, supported by growing fuel demand and a draw in U.S. crude inventories.

Financials, which account for about 30% of the Toronto market's valuation, climbed 1%, while consumer discretionary stocks were up 0.7%.

Shares of business jet company Bombardier Inc rose 7.4% to notch the highest closing level since November 2019, while BlackBerry Ltd shares gained 10.1% after the cyber-security firm beat Wall Street estimates for second-quarter revenue.

Meanwhile, domestic data showed that retail sales most likely rose 2.1% in August after dipping 0.6% in July as restrictions linked to the pandemic were lifted. (Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru Editing by Sonya Hepinstall)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting