TSX climbs 'wall of worry' to gain 6.2% in November
TSX ends up 0.4% at 25,648.00
Posts largest monthly gain in one year
Canada's economy grows 1% in third quarter
Technology sector rises 1%
Updates at market close
By Fergal Smith
Nov 29 (Reuters) -Canada's main stock index extended its November gains on Friday, moving to a new record high, with technology and industrial shares rising as investors welcomed greater clarity about the economic outlook following the outcome of the U.S. election.
The S&P/TSX composite index .GSPTSE ended up 104.48 points, or 0.4%, at 25,648.00, eclipsing the record closing high it posted on Thursday. For the month, it was up 6.2%, its fifth straight monthly gain and the largest since November last year.
"We've climbed that wall of worry," said Greg Taylor, portfolio manager at Purpose Investments.
"There was a lot of nervousness heading into the (U.S.) election and now we've got at least more clarity with what's going on. We've got more confidence that there's going to be some more growth aspects in the U.S. and that should help earnings as the economy keeps going and regulation falls back."
U.S. President-elect Donald Trump has pledged to cut taxes and loosen business regulations.
While those measures could boost the economy, the potential for higher fiscal deficits under the Trump administration, as well as inflationary tariff and immigration policies, could reduce prospects for Federal Reserve interest rate cuts and raise long-term borrowing costs, say analysts.
"The big thing everyone is going to be watching is just what happens with (bond) yields and the (U.S.) dollar going forward, because if yields and the dollar keep going higher that's going to be a pretty big headwind," Taylor said.
The Canadian dollar CAD= posted its third straight monthly decline against its U.S. counterpart in November as Canada's economy grew just 1% in the third quarter, prompting investors to raise bets on another outsized interest rate cut from the Bank of Canada.
The technology sector added 1% on Friday and industrials were up 0.5%. Seven of 10 major sectors ended higher.
Reporting by Nikhil Sharma in Bengaluru; Editing by Shreya Biswas and Deepa Babington
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
