Yahoo Finance CANADA STOCKS-TSX hits record high as rate cut hopes fuel broader gains
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TSX up 0.3%
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Index hits a record high
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Canadian job gains top forecasts in April
(Updated at 9:59 a.m. ET/ 1359 GMT)
By Purvi Agarwal
May 10 (Reuters) - Canada's main stock index hit a record high on Friday, boosted by healthcare stocks amid a broader rally, as the index was poised to end the week higher on renewed interest rate cut optimism.
At 9:59 a.m. ET (13:59 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 62.5 points, or 0.28%, at 22,438.33.
The index saw broader gains, with nine out of eleven sectors trading in the green.
Materials shares gained 0.9%, pulled up by miners like IAMGOLD Corp that rose 6.5% as gold prices traded at over two-week highs.
Healthcare shares rose 1.5% pulled up by a 3.8% rise in seniors' living provider Sienna Senior Living following its first-quarter results.
"Sentiment has been positive over the last week, as there's renewed optimism for a rate cuts prior to the end of the year, on strong economic news globally and weaker U.S. jobs numbers," said Wes Ashton, senior portfolio manager at Harbourfront Wealth.
Data on Thursday showed that the number of Americans filing new claims for unemployment benefits increased more than expected last week.
Meanwhile, Canada's economy added five times the number of jobs forecast for April, but wages grew at the slowest pace in 10 months, data showed on Friday.
"Labour markets have softened enough to lower inflation risks and justify a pivot to interest rate cuts from the Bank of Canada, but it still hasn't fallen out in a way that is forcing the central bank to act urgently," said economists at the Royal Bank of Canada in a note.
In Canadian corporate news, pipeline operator Enbridge gained 1.3% after it beat market estimates for first-quarter profit. Life insurer Sun Life Financial fell 5% after it missed core profit estimates for the first time in 12 quarters. (Reporting by Purvi Agarwal in Bengaluru; Editing by Ravi Prakash Kumar)
