Plus   Neg

TSX Snaps 5-day Losing Streak, Ends Modestly Higher

The Canadian stock market snapped a five-session losing streak on Friday, as investors indulged in some bargain hunting after markets in the U.S. and Asia rebounded amid slightly easing worries about economic growth.

Strong exports data from China and reports that the U.S. Treasury Department, in an internal report, has not labeled China as a currency manipulator, lifted sentiment in Asia and drove stock prices up. European stocks opened higher, but failed to hold gains and ended mostly lower, while the U.S. market ended with strong gains.

Though the Canadian market ended higher, the going was not easy for stocks, as investors appeared a bit uncertain about near term direction.

The benchmark S&P/TSX Composite Index ended up 97.16 points, or 0.63%, at 15,414.29. The index, which rose to 15,470.88 early on in the session, declined to a low of 15,317.69 around early afternoon.

On Thursday, the index ended down 200.27 points, or 1.29%, at 15,317.13, the day's low. The

Information technology, healthcare, industrials, consumer staples and consumer discretionary stocks moved higher. Energy stocks too ended mostly higher, while materials stocks turned in a mixed performance.

The Capped Information Technology Index climbed up 2.14%. Shopify Inc. (SHOP.TO) gained 5.7%, Open Text Corporation (OTEX.TO) added 2.4%, Descartes Systems Group Inc. (DSG.TO) surged up 3.7%, Kinaxis Inc. (KXS.TO) gained 3.3% and CGI Group Inc. (GIB.A.TO) moved up 1.4%.

The Capped Healthcare Index gained 4.24%. Aurora Cannabis Inc. (ACB.TO) jumped 8.7%, Canopy Growth Corporation (WEED.TO) climbed up 5.9%, Bausch Health Companies Inc. (BHC.TO) gained 2.4% and Knight Therapeutics Inc. (GUD.TO) ended 1.4% up. Aphria Inc. (APH.TO) declined by 3%.

The Consumer Discretionary Index and the Consumer Staples Index gained about 1.3% each. The Industrials Index moved up 1.25%.

The Green Organic Dutchman Holdings (TGOD.TO), Bombardier (BBD.B.TO), Suncor Energy (SU.TO), Thomson Reuters Corporation (TRI.TO) and B2Gold Corp. (BTO.TO) ended with strong gains.

Kinross Gold Corporation (K.TO), Barrick Gold Corporation (ABB.TO), Baytex Energy (BTE.TO) and Hydro One (H.IR.TO) ended sharply lower.

In commodities, crude oil futures for November ended up $0.37, or 0.5%, at $71.34 a barrel.

Gold futures for December ended down $5.60, or 0.5%, at $1,222.00 an ounce. On Thursday, gold futures ended up $34.20, or 2.9%, at $1,227.60 an ounce, the highest settlement since August 1.

For the week, gold futures gained about 1.4%.

Silver futures for December settled at $14.635 an ounce, gaining $0.029 for the session.

Copper futures for December ended down $0.0025, at $2.8005 per pound.

In economic news from Asia, a report released by Customs Administration on Friday showed that China's exports logged a double-digit growth in September to beat forecasts despite escalating trade tensions with the U.S.

Exports grew 14.5% year-on-year in September, faster than the 9.8% increase seen in August and the expected increase of 8.8%. Imports advanced 14.3% annually compared to the forecast of 12.4% and August's 19.9% rise. The trade surplus increased to around $32 billion in September, but below the forecast of $38 billion.

In economic news from eurozone, data from Eurostat showed Eurozone industrial production to have grown more than expected in August, climbing 1%. In July, growth had shrunk 0.7%. On a yearly basis, industrial production growth advanced to 0.9% in August, from 0.3% in July. Economists had forecast output to drop 0.3%.

According to a report from Destatis, Germany's consumer price inflation accelerated to its highest level in nearly seven years in September, with prices advancing 2.3% on year. Prices had advanced only 2% in August.

In U.S. economic news, data released by the Labor Department showed a much bigger than expected increase in U.S. import prices in the month of September. The report said import prices climbed by 0.5% in September after falling by a revised 0.4% in August. Economists had expected import prices to rise by 0.2%.

Meanwhile, the report said export prices came in unchanged in September after slipping by a revised 0.2% in August. Export prices had also been expected to increase by 0.2%.

A separate report from the University of Michigan showed a modest decrease in consumer sentiment in the month of October. The report showed the consumer sentiment index dipped to 99.0 in October from the final September reading of 100.1. The drop surprised economists, who had expected the index to inch up to 100.4.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT