THE KEY POINTS

  • At 19,501.20, the TSX gains 1.3%.
  • highest closing level since September 29.
  • Stocks of commodities lead gains
  • Brookfield increases by 4.8%
The major stock index in Canada had its largest gain in almost four weeks on Tuesday as rising commodity prices supported shares of resource companies and long-term borrowing costs declined as a result of dovish remarks from U.S. Federal Reserve officials.

The S&P/TSX composite index of the Toronto Stock Exchange closed at 19,501.20, an increase of 255.13 points, or 1.3%, marking its highest closing level since September 29.

The TSX saw its largest daily rise since September 14 and its fourth straight day of advances. Due to the Thanksgiving Day holiday, the index was closed on Monday.

Top Fed officials said that higher rates on U.S. Treasury bonds might prevent the central bank from making future hikes to its policy rate, providing relief from the recent selling pressure.

The Middle East turmoil, which on Monday drove investors seeking refuge in bonds and gold while driving up oil prices by more than 4%, was closely watched by investors.


Greg Taylor, a portfolio manager at Purpose Investments, said that the TSX "today reflects the big move we saw in energy prices, in commodities, yesterday."

The minerals sector, which includes firms that mine precious and basic metals as well as fertilizer makers,

Increased by 2.1% while the energy industry led all other sectors in growth, adding 4.2%.

Historically, people have looked to gold as a safe haven asset during difficult political and economic times.

"People are starting to say sentiment got to bearish and maybe the thought that yields were staying higher for longer was a little too overdone,

And now we are seeing a bit more buying come back into the market," Taylor stated. Utilities, which are interest rate-sensitive, climbed 1.8%,

While highly weighted financials finished 0.8% higher. After Australia's competition watchdog approved the purchase of the nation's second-largest power producer by a consortium led by Brookfield, the company's shares increased by 4.8%.

Disclaimer: We don,t provide any Investment advice.