Canadian Stocks Rise Most in Two Weeks as Gold Producers Gain
Bloomberg - Jul 26, 2016
Canadian stocks rebounded from the biggest slump in a month with the biggest gain in two weeks amid corporate earnings and a rally in gold producers.
The S&P/TSX Composite Index added 0.4 percent to 14,550 at 4 p.m. in Toronto, the biggest gain since July 12. A rout in energy shares dragged the index lower by 0.7 percent on Monday. The benchmark is now up 12 percent in 2016, making Canadian stocks more expensive than their U.S. peers, with a price-earnings ratio of 22.4 for the S&P/TSX, about 11 percent higher than the S&P 500 Index.
Raw-materials producers climbed 2.2 percent as a group, the biggest contributor to gains in the S&P/TSX as six of 10 industries increased on trading volume 17 percent lower than the 30-day average. Gold prices pushed higher as the dollar fell ahead of the July interest rate decision at the Federal Reserve. Traders are pricing in only a 10 percent chance of a rate increase in July, according to data compiled by Bloomberg.
