CANADA STOCKS-TSX rises, touches three-week high 

By Reuters News

Oct 15 (Reuters) - Canada's main stock index closed higher on Thursday, touching a three-week high, powered by mining and tech stocks as lower bond yields boosted risk appetite, offsetting weakness in energy shares.

The S&P/TSX Composite Index .GSPTSE was up 1.55%, at 36,137.10, rebounding after sharp declines in the previous session.

  • Canada's benchmark 10-year bond yield slipped to 3.828%, driving broad sectoral gains.

  • Materials sector .GSPTTMT, including metal miners, gained 3.3% as precious metal prices rebounded on a softer dollar.

  • The S&P 500 ended higher, springing back from early losses as investors concerned about AI stocks shifted into Eli Lilly, UnitedHealth and other healthcare and consumer stocks.

  • Canadian tech equities .SPTTTK gained 2.3%, with e-commerce platform Shopify SHOP.TO gaining 2.9%.

  • Energy sector .SPTTEN slipped 0.5% as investors weighed possible US steps to ease restrictions on the world’s "shadow fleet" of tankers, while conflict in the Middle East kept a geopolitical risk premium in the market.

  • Canadian factory sales grew 1.5% in August from July on higher sales of primary metals, data showed on Thursday.

  • Still, economists remain cautious about recovery in manufacturing considering limited sectoral gains.

  • "This reinforces our view that the Bank of Canada will deliver only two of the roughly four rate hikes currently priced in by markets, with tightening serving more as a risk-management exercise against upside inflation risks," said Thomas Ryan, senior North America economist, Capital Economics.

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