Canadian Stocks Soar : Canada’s primary stock index surged to an eight-week pinnacle on Friday, propelled by a resurgence in oil prices that bolstered energy shares. Concurrently, optimistic sentiments arose from domestic producer price data, fueling speculation that the Bank of Canada might conclude its interest rate hiking initiative.
The Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) concluded the day with a gain of 122.70 points, or 0.6%, reaching 20,175.77. This marked the index’s highest closing level since September 20.
The weekly performance was robust, with a 2.7% increase, driven by upbeat U.S. economic data that kindled hopes of the Federal Reserve concluding its tightening cycle. Notably, Canadian producer prices declined by 1% in October compared to September, aligning with emerging indications of a cooling inflationary trend.
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Angelo Kourkafas, an investment strategist at Edward Jones Investments, commented on the Producer Price Index (PPI) data, stating, “It is consistent with the cooldown that provides support that the BoC is done hiking, and we are likely going to see some rate cuts, potentially even before the Fed.”
The energy sector (.SPTTEN) experienced a notable uptick, surging by 2.8% as crude prices rebounded from a four-month low. U.S. crude oil futures settled 4.1% higher at $75.89 a barrel. Financials (.SPTTFS), carrying significant weight, also made gains, rising by 0.6%, while the consumer discretionary sector saw a 1.1% increase.
On the flip side, the materials sector (.GSPTTMT), encompassing precious and base metals miners and fertilizer companies, lagged behind, concluding 0.7% lower. This nuanced performance across sectors underscores the dynamic nature of Canada’s stock market amid evolving economic indicators and global trends.
Our Reader’s Queries
What are the best Canadian stocks to buy right now?
In 2023, Canada’s top-performing stocks have been identified. Shopify Inc Registered Shs -A- Subord Vtg takes the lead with a total return of 121.06% year-to-date (daily). Following closely behind are SNC-Lavalin Group Inc with a return of 76.78%, Kinross Gold Corp with 51.69%, and Fairfax Financial Holdings Ltd Shs Subord.Vtg with 51.19%. These stocks have shown impressive growth and are worth keeping an eye on for potential investment opportunities.
What is the outlook for Canadian stocks?
According to experts, Canada’s stock market is set to deliver promising returns in 2024. The anticipated pause in the interest rate environment is expected to boost various crucial sectors, leading to a positive outlook for investors. With this development, investors can look forward to a profitable year ahead.
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What is the best dividend stock in Canada?
Enbridge (TSX:ENB) is a top choice for investors looking for a consistent source of income through dividends. Similarly, Fortis (TSX:FTS) is a reliable option for those seeking dividend income. Another attractive income stock is Toronto-Dominion Bank (TSX:TD).