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TSX Snaps Losing Streak, Ends Notably Higher

The Canadian market snapped a six-day losing streak and ended higher on Wednesday, despite mounting worries about global growth.

The start was quite weak, but the market rebounded swiftly and kept edging higher and higher as stocks gained in strength on bargain hunting.

Shares from the materials space moved up sharply thanks to rising gold and silver prices. Consumer discretionary, real estate and information technology shares were the other prominent gainers.

Stocks from telecommunications, consumer staples and utilities sections too moved higher. A few stocks from industrial and financial sections rose on bargain hunting. Energy stocks came off early lows, and a few even managed to close on a positive note. Healthcare stocks were mostly subdued.

The benchmark S&P/TSX Composite Index ended up 115.73 points, or 0.72%, at 16,265.22. The index scaled a low of 16,064.34 and a high of 16,285.94 in the session.

In the consumer discretionary section, Restaurant Brands International (QSR.TO) gained 3.7%. Magna International (MG.TO), Aritzia Inc. (ATZ.TO), Dollarama Inc. (DOL.TO), Mty Food Group (MTY.TO), Canadian Tire Corporation (CTC.A.TO), Martinrea International (MRE.TO) and Canada Goose Holdings (GOOS.TO) gained 1 to 2.3%.

Among the stocks in the materials index, B2Gold Corp (BTO.TO) zoomed 11.5% on strong results. First Majestic Silver (FR.TO), Semafo (SMF.TO), Centerra Gold (CG.TO), Kinross Gold (K.TO), Alacer Gold Corp (ASR.TO), Yamana Gold (YRI.TO), Iamgold Corp (IMG.TO), Barrick Gold Corp. (ABX.TO), Franco-Nevada Corp (FNV.TO), Agnico Eagle Mines (AEM.TO), Torex Gold Resources (TXG.TO), MAG Silver (MAG.TO), Oceanagold Corp. (OGC.TO) and Wheaton Precious Metals (WPM.TO) moved up 2 to 6%.

Detour Gold Corp. (DGC.TO), Pan American Silver (PAAS.TO), Cascades Inc. (CAS.TO) and Western Forest Products (WEF.TO) also ended with strong gains.

Among healthcare stocks, Aphria Inc (APHA.TO) declined 4%. Aurora Cannabis Inc. (ACB.TO) ended 2.7% down.

In economic news, Western University's Ivey Purchasing Managers Index for July came in with a reading of 54.2 for July, compared to 52.4 in June. However, that was still well below the 61.8 reading in August 2018.

U.S. stocks recovered well after a severe setback early on in the session. The Dow, which went down by almost 600 points in early trades to a two-month intraday low, ended the day with a loss of just 22.45 points, or 0.1%.

The Nasdaq ended up 0.3% and the S&P 500 edged up 0.1%.

Escalating U.S.-China trade war and the People's Bank of China's move to set the midpoint for onshore yuan at 6.9996 per dollar triggered the sell-off in early trades.

Asian markets turned in a mixed performance, while the major European markets closed higher.

In commodities, West Texas Intermediate Crude oil futures for September ended down 4.7% at $51.09 a barrel.

Gold futures for December ended at $1,519.60, up $35.50, or about 2.4%, the biggest single-session gain in about seven weeks, and the first close above $1,500 since April 2013.

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