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MARKETS LIVE BLOG:

S&P 500 HOLDS NEAR RECORD AS U.S. JOBS DATA SHOW MORE COOLING

Unemployment rate unexpectedly rose slightly to 4.1%, the highest level since November 2021

CANADA STOCKS-Toronto shares advance as investors cheer BoC's steady rate verdict

Shashwat Chauhan
·2 min read

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TSX up 0.5%

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Bank of Canada holds rate at 5%

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Shopify down on brokerage downgrades

(Updated at 10:19 a.m. ET/ 1519 GMT)

By Shashwat Chauhan

Dec 6 (Reuters) -

Canada's main stock index jumped on Wednesday, with telecoms stocks leading, while rate-sensitive real estate stocks gained as investors mostly cheered the Bank of Canada's (BoC) latest decision to hold interest rates steady.

At 10:19 a.m. ET (1519 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 90.82 points, or 0.45%, at 20,466.75.

The BoC

held

its key overnight rate at 5% but refused to rule out another hike, saying it was still concerned about inflation even as it said prices were generally easing.

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"The BoC statement out today is mildly dovish," said Ian Chong, portfolio manager at First Avenue Investment Counsel.

"They still have mentioned the optionality to increase rates if inflation remains persistent or continues to increase, but (with) where inflation is right now, it is trending down towards their long-term target... I think we are more than likely heading towards a soft landing."

Rate-sensitive real estate jumped 1.5% while yields on Canadian government bonds fell. Utilities, generally regarded as a bond proxy, up 1.3%.

The loonie gained 0.3% against the dollar.

The telecoms sector led gains, rising 2% while energy was the worst hit, falling 1.7%, tracking a drop in crude oil prices.

On the data front, Canada recorded a bigger-than-expected trade surplus in October. While across the border, U.S. private payrolls increased less than expected in November. .

Investors will now be looking at the more comprehensive November U.S. nonfarm payrolls report on Friday for more cues on the state of world's largest economy.

Wall Street, too, had an upbeat start to the day.

Among individual stocks, Shopify fell 3.0% after at least two brokerages downgraded the e-commerce firm's stock. (Reporting by Shashwat Chauhan in Bengaluru: Editing by Tasim Zahid)