CANADA STOCKS-TSX extends gains as AI demand lifts tech and financials

By Reuters News

By Anand Gopal R

Oct 21 (Reuters) - Canada's main stock index extended gains on Wednesday as technology stocks rallied after upbeat US earnings signaled stronger AI demand, while advancing heavyweight financials also supported the benchmark.

The S&P/TSX Composite Index .GSPTSE was up 0.62% at 36,330.87 points as of 10:31 a.m. ET

  • Strong earnings from Spacex SPCX.O and Super Micro Computer SMCI.O on the Wall Street lifted market sentiment

  • Canadian tech equities .SPTTK gained 0.9%, with BlackBerry BB.TO and Shopify SHOP.TO rising 6.3% and 2%, respectively

  • Heavily weighted financials .SPTTFS rose 0.8% to nearly a one-month high

  • "TSX has gained on movements in energy, and bank stocks have had a bit of a bounce in the last few sessions, butthe headlines are moving the market based on technology display," said Allan Small, senior investment adviser at the Allan Small Financial Group with iA Private Wealth.

  • Energy sector .SPTTEN gained 0.6% as Brent crude prices held firm near $108 per barrel as supply disruption fears from Middle East persisted with no resolution in sight for the US-Iran conflict O/R

  • "It doesn't look like anything (on resolution) is coming out of the war in the Middle East. We'll have to see what happens after the midterm elections in the US" added Small

  • Yields in Canadian benchmark 10-year bonds fell for the second session, to 3.869%

  • Materials sector .GSPTTMT, including metal miners rose 0.4% after gold prices gained to give up early session declines

  • Canada's federal budget will be delivered on November 5, Finance Minister Francois-Philippe Champagne told the House of Commons on Tuesday

  • Traders are pricing in an 80% chance of a Bank of Canada rate hike next week and a total of about a percentage point of hikes over the next 12 months, according to LSEG data

  • Rate-sensitive utilities .GSPTTUT edged 0.7% higher

  • Canada and Turkey are expected to sign a joint declaration aimed at deepening bilateral cooperation in four areas, including defence and energy, during Prime Minister Mark Carney’s visit later this week, a person briefed on the matter said

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