CANADA STOCKS-TSX rises as easing oil prices offset Fed rate hike concerns
By Utkarsh Hathi
Sep 11 (Reuters) - Canada's main stock index rose on Friday, as easing oil prices on prospects of a deal to resume shipping in the Middle East buoyed sentiment and helped investors look past rising odds of a Federal Reserve interest rate hike next week.
The S&P/TSX Composite Index .GSPTSE rose 0.6% to 35,719.38 points as of 10:20 a.m. ET, on track to snap a four-day losing streak. The benchmark had slipped to nearly a six-week low in the previous session and remains on track for weekly losses.
Oil prices slipped 2.5% on Friday after the Financial Times reported that foreign ministers in the Middle East are exploring a deal with Iran to resume shipping in the Strait of Hormuz. O/R
Tech shares .SPTTTK led sectoral gains, advancing 2.6%; e-commerce platform Shopify SHOP.TO rose 3.6%.
"The longer-term investment themes around AI, cloud infrastructure and digitization remain in place. The focus will likely be increasingly on companies that can demonstrate sustainable revenue growth, cash flow and profitability," said Michael Constantino, CEO of Webull Canada.
The materials sector .GSPTTMT, including metal miners, climbed 2% as gold XAU= and silver XAG= prices recovered and rose 1.6% and 2.1%, respectively.
U.S. consumer prices accelerated in August as the cost of gasoline rebounded after two straight monthly declines, data released on Friday showed.
Traders are now pricing in an 86% chance of a Fed rate hike next week, up from 65% before the data, according to CME Group's FedWatch tool.
"If U.S. rates move higher, that could add some pressure to Canadian financial conditions, but the BoC will likely be watching Canada’s own inflation data and the persistence of higher energy prices when assessing its next move," said Constantino.
The industrial sector .GSPTTIN edged 0.4% higher, although it was on track for a fourth straight weekly fall.
(Reporting by Utkarsh Hathi and Darshan Kumar in Bengaluru; Editing by Sahal Muhammed)
