Canadian Stocks Rise as Gold Rebound Boosts Producers

Canadian stocks rose for a fourth day, headed for a two-week high, as raw-materials producers increased with a rebound in the price of gold.

Kinross Gold Corp. and Semafo Inc. added more than 3.8 percent to pace gains among gold producers. CCL Industries Inc. climbed 4.8 percent after second-quarter earnings topped analysts’ estimates. Gildan Activewear Inc. tumbled 4.8 percent after the apparel maker cut its revenue target for the year.

The Standard & Poor’s/TSX Composite Index rose 53.22 points, or 0.4 percent, to 14,436 at 10:22 a.m. in Toronto. The S&P/TSX has slumped 0.8 percent in July, headed for a third monthly decline, the longest such streak since 2012. Canadian equity markets will be closed on Monday for a civic holiday.

Eldorado Gold Corp. jumped 6.4 percent and Goldcorp Inc. rallied 3.2 percent as raw-materials producers gained 1.6 percent as a group. Seven of 10 industries in the S&P/TSX advanced on trading volume 11 percent lower than the 30-day average today.

Gold headed for the first gain in four days as investors look for hints on when the Federal Reserve will raise interest rates. Wages and salaries in the U.S. rose in the second quarter at the slowest pace on record, a setback that may prompt some Fed policy makers to call for a delay in raising rates for the first time since 2006.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza