CANADA STOCKS-TSX rises as easing oil prices, bond yields boost sentiment
By Anand Gopal R
Oct 20 (Reuters) - Canada's main stock index rose on Tuesday, as broad-based gains on easing oil prices and bond yields outweighed losses in energy shares.
The S&P/TSX Composite Index .GSPTSE was up 0.64% at 36,160.04 points at 10:34 a.m. ET, with the energy sector .SPTTEN the only loser, down 1.6%.
Brent crude prices slipped 1.7%, giving up early-session gains, after Yemen's Houthis said they launched several attacks on Saudi energy sites O/R
The yield on Canada's 10-year benchmark bond fell 9.3 basis points to 3.86%
The heavyweight financial sector .SPTTFS rose 0.9%, providing the biggest boost to the benchmark
The real estate sector .GSPTTRE rose 1.8%, while the tech sector .SPTTK led sectoral gains with a 2% rise, as e-commerce firm Shopify SHOP.TO added 1.9%
Traders are pricing in an 82% chance of a quarter-point interest rate hike from the Bank of Canada next week, and a percentage point hike over the next 12 months
Canada's annual inflation rate for September accelerated above the central bank's upper limit, with the data on Monday following weak jobs data last week
"We continue to believe softness in economic data and limited spillover into core inflation will mean that the BoC does not fully deliver on the over 4 hikes over the next year that are currently priced in," said Bank of America Global Research analysts in a note
The materials sector .GSPTTMT, including metal miners, was up 1% on firmer precious metal prices
Bombardier advanced 3.2% after US President Donald Trump said late Monday he does not plan to hurt the jet maker, more than a month after he threatened to bar it from the US market
Separately, the Bank of Canada said on Monday that Canadian firms' outlook had deteriorated after the collapse of trade talks with the US, but overall sentiment remained considerably stronger than at the peak of trade tensions last year