Canadian Stocks Rise to Two-Month High on China, Europe Stimulus

Canadian stocks rose, with the benchmark index capping a sixth weekly gain, after central banks in China and Europe signaled additional stimulus measures, boosting investors’ confidence in the global economy.

Raw-material and energy producers paced gains as Lightstream Resources Ltd. and Teck Resources Ltd. soared more than 9 percent. Gold miners dropped as the price of the precious metal pared gains. Metro Inc. slid for a second day after Credit Suisse cut its rating on the shares.

The Standard & Poor’s/TSX Composite Index rose 36.28 points, or 0.2 percent, to 15,111.46 at 4 p.m. in Toronto, the highest level since Sept. 24. The Canadian benchmark has advanced in 12 of the last 13 trading sessions, for a 5 percent gain since Nov. 4. The gauge rallied 1.8 percent in the week.

Global equities gained to the highest in two months after China cut its benchmark interest rates for the first time since July 2012. The People’s Bank of China lowered its one-year deposit rate and the one-year lending rate, with changes effective tomorrow, according to its website.

European Central Bank President Mario Draghi said he will do what is necessary to raise inflation in the euro region as fast as possible. Should the current policy not be effective, the ECB will “broaden even more the channels” through which it intervenes, by adjusting the size, pace and composition of asset purchases, he said in Frankfurt.

Canada’s inflation rate was faster than all economist forecasts in October, Statistics Canada said today. The consumer price index rose 2.4 percent compared with the same month a year earlier, following the September pace of 2.0 percent. The core rate that excludes eight volatile products accelerated to 2.3 percent, the fastest since February 2012.

Raw Materials

Four of 10 main industries in the S&P/TSX advanced. Trading in the gauge’s companies was in line with the 30-day average.

Materials producers jumped 0.8 percent. Teck Resources gained 9.4 percent to C$19.94 and First Quantum Minerals Ltd. jumped 7.2 percent to C$19.12.

Energy shares surged 1 percent as oil and gas explorers and producers soared 1.8 percent. Lightstream Resources rallied 15 percent to C$3.90, while Bellatrix Exploration Ltd. increased 7 percent to C$5.79.

The S&P/TSX Gold Index sank 0.7 percent as gold pared a 1.4 percent advance. Torex Gold Resources Inc. dropped 2 percent to C$1.48 and Eldorado Gold Corp. slipped 1.8 percent to C$7.11.

Metro slid 0.4 percent to C$87.85. Credit Suisse analyst David Hartley downgraded the food-and-drug store operator’s stock yesterday to underperform from neutral, with a target price of C$75 a share.

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