Yahoo Finance CANADA STOCKS-TSX gains on mining, healthcare boost
(Updated at 10:22 a.m. ET)
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TSX up 0.2%
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Enbridge to form natural gas supply venture
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Canada Goose to reduce 17% of corporate workforce
By Johann M Cherian
March 26 (Reuters) - Canada's resources-heavy stock index inched higher on Tuesday, with precious metals miners and healthcare stocks in the lead, while Athabasca Oil was among the top losers after a brokerage downgraded the oil explorer.
At 10:22 a.m. ET (1422 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 33.23 points, or 0.15%, at 21,975.51.
The TSX is set to end the first quarter of 2024 on an upbeat note, with energy and industrials among top gainers.
"The earnings have been strong in the first quarter and we haven't seen any major company come out with significant warnings," said Barry Schwartz, chief investment officer and portfolio manager at Baskin Financial Services.
"For Canadian markets, the next driver is really interest rate cuts."
Traders are pricing in a 51.7% chance that the Bank of Canada could deliver its first interest rate cut of 25 basis points in June.
Investors also look forward to the February U.S. personal consumption expenditure data, the Federal Reserve's preferred inflation gauge, on Friday, which could help determine the outlook for interest rate cuts expected later in the year.
Back home, the materials sector rose 0.8%, tracking stronger gold and silver prices as a weaker U.S. dollar made the metals cheaper for holders of other currencies. The appeal for safe-haven assets also increased ahead of the crucial U.S. inflation data.
The healthcare sector outperformed the broader market with a 1.8% gain.
Company-wise, luxury parka maker Canada Goose said it would trim about 17% of its global corporate workforce as part of efforts to rein in costs. Its shares reversed early gains and were last down 3.2%.
Enbridge said it would form a natural gas supply venture connecting Permian supplies to the U.S. Gulf Coast. Shares of the pipeline operator slipped 0.5%.
Athabasca Oil dropped 1.6% after RBC downgraded the stock to "sector perform" from "outperform". (Reporting by Johann M Cherian in Bengaluru; Editing by Shilpi Majumdar)
