- Wagers on rate hike waning as Federal Reserve meets this week
- Crude climbs as fighting disrupts resumption of Libya exports
Canadian stocks rose with global equities as financial shares advanced and a slide in the U.S. dollar boosted shares in raw-materials producers amid higher prices for resources from oil to gold.
The S&P/TSX Composite Index added 0.3 percent to 14,496.23 at 4 p.m. in Toronto, halting losses from last week. The measure is on track for a 3.1 percent gain in the third quarter, pushing its advance this year to 11 percent.
Financial services stocks rallied 0.3 percent to pace gains in the S&P/TSX. Manulife Financial Corp. and Sun Life Financial Inc., among the nation’s largest insurers, added at least 0.9 percent. Traders now see a 20 percent chance of a rate increase when Fed policy makers meet this week, and a 56 percent likelihood by the end of the year.
Raw-materials producers added 0.6 percent. Gold and silver rebounded from their lowest close this month ahead of key interest rate meetings of the Fed and Bank of Japan this week. Silver Wheaton Corp. and Franco-Nevada Corp. increased more than 1.1 percent.
Crude futures rose as much as 0.6 percent in New York, rebounding from the lowest close in more than a month as fighting in Libya has thwarted what would’ve been the first crude shipment from Libya’s Ras Lanuf export terminal since 2014. OPEC may call an extraordinary meeting if ministers reach consensus at an informal gathering next week, said Secretary General Mohammed Barkindo, according to the Algerian Press Service.
Commodity producers have led the resurgence in the S&P/TSX this year, rebounding after a disastrous 2015 when the benchmark posted its worst annual loss since the 2008 financial crisis. The S&P/TSX is up 11 percent in 2016, good for the second-best performance among developed markets in the world behind New Zealand. That’s made Canadian stocks more expensive than the S&P 500, with a price-to-earnings ratio of 23.1 opening up a 15 percent premium.
Bombardier Inc. fell 4.9 percent to the lowest level in five months. The Montreal based aerospace manufacturer is suffering, along with business-jet competitors, from an oversupply in production with slowing growth, according to a report from Bloomberg Intelligence analyst George Ferguson.
CGI Group and Constellation Software added at least 0.9 percent to lead to technology stocks higher. The group gained 0.8 percent, to the highest close in almost two weeks.
Torstar Corp., owner of the Toronto Star newspaper, added 3 percent for a second day of gains. The company has agreed to sell the land and buildings in Vaughan, Ontario previously used to operate the Toronto Star’s printing facility in a deal for C$54.3 million. Torstar expects the deal to close in the third or early fourth quarter.