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TSX Gains For 11th Straight Session

The Canadian stock market ended on a firm note on Friday, with investors picking up shares amid optimism about U.S.-China trade talks and on rising crude oil prices.

According to a report from Bloomberg News, China has offered to go on a six-year buying spree to ramp up imports from the U.S. It said further that China would seek to reduce its trade surplus with the U.S. by increasing annual goods imports by a combined value of more than $1 trillion.

On Thursday, there was a report from the Wall Street Journal that U.S. officials were debating lifting tariffs on Chinese imports to give Beijing a reason to make deeper concessions in ongoing trade talks.

With today's gains, the market extended its winning streak to an eleventh session, and recorded its fourth weekly increase.

The benchmark S&P/TSX Composite Index ended up 92.61 points, or 0.61%, at 15,303.83, after rising to a high of 15,325.56. On Thursday, the index rose 99.96 points, or 0.66%, to 15,211.22. For the week, the index gained nearly 2.5%.

The Capped Energy Index gained 0.75%. Suncor Energy (SU.TO) advanced by 2.3%, Cenovus Energy (CVE.TO) gained nearly 1%, Encana Corporation (ECA.TO) added 1.5%, Tourmaline Oil Corp. moved up 2.7% and ARC Resources (ARX.TO) gained 2.4%.

The Capped Financial Index moved up 0.84%. Toronto-Dominion Bank (TD.TO) gained 1.4%, Bank of Montreal (BMO.TO) added 1.1%, Canadian Imperial Bank of Commerce (CM.TO) ended 1.05% up and National Bank of Canada (NA.TO) gained nearly 1%.

The Capped Healthcare Index ended nearly 1% up. Cronos Group (CRON.TO) jumped 8.7%, Canopy Growth Corporation (WEED.TO) gained 1.5%, Aphria Inc. (APHA.TO) gained 3.4% and Knight Therapeutics (GUD.TO) ended up 1.9%.

Canadian Pacific Railway (CP.TO) ended higher by about 1%, Waste Connections (WCN.TO) gained 1.8%, CAE Inc. (CAE.TO) added 1.3%, Ritchie Bros. (RBA.TO) gained 1.7% and Bombardier Inc. (BBD.B.TO) ended 0.5% up.

Among information technology shares, Constellation Software (CSU.TO), BlackBerry (BB.TO), Open Text Corporation (OTEX.TO), Kinaxis (KXS.TO) and Enghouse Systems (ENGH.TO) ended higher by 1 to 2.3%, while Descartes Systems Group (DSG.TO) surged up 3.5%.

Among materials shares, Kirkland Lake Global (KL.TO), First Quantum Minerals (FM.TO) and Agnico Eagle Mines (AEM.TO) ended notably lower, while CCL Industries (CCL.B.TO) gained 2.1%.

In the consumer discretionary space, Great Canadian Gaming Corporation (GC.TO) ended 2.75% up and Magna International (MG.TO) advanced by 1.5%, while Linamar Corporation (LNR.TO) declined by 1.4%.

On the economic front, Canada's consumer price index rose 2% on a year-over-year basis in December, after rising 1.7% in the previous month. On a seasonally adjusted monthly basis, inflation was up 0.2% in December.

A report from Statistics Canada said foreign investors bought Canadian securities, mainly bonds, worth $9.5 billion. Meanwhile, Canadian investors reduced their holdings of foreign securities by $4.1 billion.

The U.S. market ended higher and the major averages reached their best closing levels in well over a month. The Dow ended up 1.4%, the Nasdaq added 1% and the S&P 500 gained 1.3%. For the week, the Dow gained 3%, while the Nasdaq and the S&P 500 gained 2.7% and 2.9%, respectively.

In U.S. economic news, a report from the University of Michigan showed a substantial deterioration in U.S. consumer sentiment in the month of January.

A report from the Federal Reserve showed industrial production increased by slightly more than expected in December, as jumps in manufacturing and mining output more than offset a sharp pullback in utilities output.

European markets ended on a buoyant note on Friday and many indices rose to multi-week highs, as investors indulged in hectic buying amid increasing signs of progress in U.S.-China trade talks and fairly good earnings reports from U.S. companies so far.

Asian stocks rose on Friday as reports of progress in U.S.-China trade talks as well as stronger than expected economic data from the U.S. helped ease global growth worries.

In commodities, crude oil futures for February ended up $1.73, or 3.3%, at $53.80 a barrel, a near two-month high.

Gold futures for February ended down $9.70, or about 0.8%, at $1,282.60 an ounce.

Silver futures for March settled at $15.399 an ounce, down $0.137 from Thursday's close, while Copper futures for March ended at $2.719 per pound, gaining $0.039 for the session.

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