CANADA STOCKS-TSX pares weekly decline as investors reduce Fed rate hike bets

By Reuters News

By Darshan Kumar R and Fergal Smith

- Canada's main stock index rallied on Friday, led by materials and industrial shares, after weaker-than-expected US jobs data bolstered expectations the Federal Reserve would leave interest rates on hold this month.

The Toronto Stock Exchange's S&P/TSX Composite Index .GSPTSE ended up 347.89 points, or 0.99%, at 35,502.65, snapping a four-day slide which led to the lowest closing level in 10 weeks on Thursday.

For the week, the index was down 0.8% as bond yields globally climbed, including a 24-year high for the yield on the US 10-year note.

  • US job growth slowed more than expected in September and the nonfarm payrolls count for the prior two months was revised sharply lower, almost taking another interest rate hike from the Fed this month off the table.

  • "The headwind from rising interest rates has backed off for a day, and so the markets are bouncing back," said Colin Cieszynski, chief market strategist at SIA Wealth Management.

  • The materials sector .GSPTTMT, which includes metal mining shares, added 1.8%. The move was led by a gain of 5.3% for the shares of Teck Resources TECKb.TO.

  • China's antitrust regulator has asked Anglo American AAL.L to commit to supply the country with a steady flow of copper concentrate as a condition for approving its proposed $54 billion merger with Teck, three people aware of the development said.

  • Industrials rose 1.5% as railroad shares advanced, while technology .SPTTTK and energy .SPTTEN both ended 1.4% higher.

  • U.S. crude oil futures settled 1.9% lower at $91.11 a barrel but recouped some of their earlier declines which came after European leaders agreed to US President Donald Trump's request to release diesel reserves to lower prices and reduce fuel imports from the US.

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