CANADA STOCKS-TSX gains as crude slide lifts sentiment
By Anand Gopal R
Nov 2 (Reuters) - Canada's main stock index rose on Monday after oil prices tumbled on hopes that renewed US-Iran talks would ease oil supply risks in the Middle East.
The S&P/TSX Composite Index .GSPTSE was up 0.9% at 35,979.08 points as of 10:25 a.m. ET (1525 GMT).
Energy sector .SPTTEN slipped to a more than two-week low, declining 3%, after Brent crude fell over 6% on hopes of a deal to end the US-Israeli war on Iran that could ease Middle East supply disruptions O/R
Tehran said on Monday that talks with the US to end their eight-month war are ongoing, after Qatari-mediated discussions produced revised proposals but no breakthrough.
"It's more re-positioning for the new month, along with support from oil and developments in the Middle East. We're seeing a bounce from Friday's massive sell-off and will see what happens over the next few days with the elections," said Michael Dehal, a senior portfolio manager at Dehal Investment Partners at Raymond James
Most sectors traded in positive territory, with the materials sector .GSPTTMT leading gains, climbing 3.3% as gold rebounded 2.1% after a retreat in oil tempered inflationary worries GOL/
Industrials sector .GSPTTIN added to the index gains, with Air Canada AC.TO and Boyd Group Services BYD.TO rising nearly 6% each
Investors are also watching Tuesday's US midterm elections and their broader impact on fiscal policies
US President Donald Trump said on Sunday his administration has a framework for a new Canada trade deal, while Prime Minister Mark Carney described their talks as constructive
Canada is on track to double its non-US trade within a decade through diversified global ties, Foreign Minister Anita Anand said Saturday
"Having more trading partners is definitely something that's positive for our markets, for our economy, especially," Dehal said
Canada's manufacturing contracted in October for the first time this year, hit by tariffs and geopolitical uncertainty