TSX posts biggest gain in six months as cyclical stocks rally

TSX ends at 22,225.61, up 1.58%

It records the biggest increase since February 15

Energy gains 2.02%; oil stabilizes at 1.3%

Canadian Tire surges 7.74% after earnings beat

Aug. 8 – Canada’s main stock index rose by the most in six months on Thursday as stocks sensitive to the economic outlook took the lead after U.S. jobless claims data eased concerns about an economic slowdown.

The Toronto Stock Exchange’s S&P/TSX stock index ended up 344.66 points, or 1.58%, at 22,225.61, its biggest gain since Feb. 15.

That followed four straight days of declines, with the index closing at its lowest level in almost six weeks on Wednesday.

“Cyclical sectors such as financials and energy were the biggest gainers as US data eased concerns about a slowdown in the US economy,” said Elvis Picardo, portfolio manager at Luft Financial, iA Private Wealth.

The U.S. stock market also rose after the number of Americans filing new claims for unemployment benefits fell more than expected last week.

“The market is really shaken up by every piece of economic data that comes in, and that tends to be the case when you have turning points like the current one,” Picardo said.

“There is a huge tug of war going on in investor sentiment between lingering hopes for a soft landing and concerns that the US is slowing faster than expected.”

All 10 major sectors in the Toronto market rose, including the economically sensitive and heavily stressed financials group.

At the close, shares were up 1.45% and Manulife Financial Corp. shares were up 2.47% after the insurer reported better-than-expected quarterly profit.

Energy rose 2.02% as crude oil rose 1.3% to $76.19 a barrel. Gold and copper also rose, lifting metals mining stocks.

The materials group, which includes metal mining and fertilizer companies, was up 1.74%, while technology was up 3.04%.

Canadian Tire Corporation was a standout, with shares rising 7.74% after the company beat quarterly earnings estimates.

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