(MENAFN- ProactiveInvestors) Canadian shares stretched their rally for a sixth day sending their benchmark gauge to its highest level in two months as investors welcomed a move by China the nation’s second-largest trading partner to slash interest rates.
The resource-sensitive Standard & Poor’s/TSX Composite Index (TSE:OSPTX) rose 0.1 percent to 15092.76 at 12:16 p.m. in Toronto. Six out of 10 share groups declined.
China cut benchmark interest rates for the first time since July 2012. China lowered the one-year deposit rate by 0.25 percentage point to 2.75 percent and the one-year lending rate by 0.4 percentage points to 5.6 percent effective tomorrow the People’s Bank of China said today.
The S&P/TSX’s energy sector the main index's second most heavily weighted group rose 1.5 percent even as oil Canada’s largest export slipped. Energy (TSE:SU) Canada's largest oil sands producer gained 1.9 percent to C$40.46. () the country's second-largest oil and gas company tacked on 0.7 percent to C$42.43.
() (NYSE:TLM) shot up 2.8 percent to C$6.99 after its unit Talisman (Colombia) Oil & Gas Ltd and S.A. (TSE:ECP) () Colombia’s largest petroleum company said they have made a second oil discovery in Block CPO-9 in Colombia.
WTI for January delivery fell 6 cents to $75.79 a barrel at 12:04 p.m. on the New York Mercantile Exchange. Brent for January settlement increased 22 cents or 0.3 percent to $79.55 a barrel on the London-based ICE Futures Europe exchange.
Raw-material shares ticked up 0.3 percent as gold rose to the highest in three weeks. (TSE:ABX) slumped 1.4 percent to C$14.33. (TSE:G) sank 1.7 percent to C$22.95.
(TSE:NSU) the operator of a mine in Eritrea fell 1.3 percent to C$4.66 after saying it will defend itself against a lawsuit filed in a British Columbia court calling the human-rights allegations against it and an African subcontractor “unfounded.” The filing of the suit emerged yesterday the same day Nevsun said it had held preliminary talks with various parties about a potential transaction.
Gold futures for December delivery climbed 1.1 percent to $1204.40 an ounce on the Comex at 11:09 a.m. in New York after touching $1207.60 the highest since Oct. 30.
Financials the index's most heavily weighted sector edged down 0.2 percent. () which has the heaviest weighting in the index skidded 0.4 percent to $82.68 after saying it is exiting some of its international wealth-management businesses a move that will lead to an unspecified number of job losses.
Toronto-Dominion Bank (TSE:TD) the second-largest bank by market value eased back 0.2 percent to C$57.07.
Metro (TSE:MRU) a food-and-drug store operator slipped 0.6 percent to C$87.68. Credit Suisse analyst David Hartley lowered the stock to “underperform” from “neutral” with a target price of C$75 a share.
The junior () rose 1.1 percent to 791.80 at 11:56 a.m. in Toronto. () the heaviest stock in the gauge gained 2.2 percent to C$5.62. The 410-company measure has lost 16 percent this year through yesterday.
In currency the Canadian dollar rose to the highest level this month after inflation rose faster than all economists’ forecasts in October raising bets the will signal it’s closer to boosting interest rates. The loonie added 0.7 percent to C$1.1227 per U.S. dollar at 10:22 a.m. in Toronto. One loonie buys 89.07 U.S. cents.
In the U.S. market shares advanced as optimism in the world economy grew after central banks in China and Europe signaled additional stimulus measures. The S&P 500 (INDEXSP:.INX) rose 0.6 percent at 11:31 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) gained 0.7 percent while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) added 0.5 percent. Most followed shares included Caterpillar Gap AutoDesk Nike and Hertz.
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