Toronto market rises to three-week high after peaking in hopes of US dollar

TSX ends with 178.61 points, or 0.9%, at 19,097.91 Posts, the highest closing level since October 5. Canopy Growth Jumps 25.7% Celestica Shares Up Nearly 16%

TORONTO, Oct. 25 (Reuters) – Canada’s main stock index rose to its highest closing level in nearly three weeks on Tuesday, as investors welcomed declines in the US dollar and US Treasury yields and were helped by big gains for Celestica Inc (CLS) .TO) and Canopy Growth Corp (WEED.TO).

The Toronto Stock Exchange’s composite S&P/TSX index (.GSPTSE) finished 178.61 points, or 0.9%, at 19,097.91, its third consecutive day of gains and the highest closing level since October 5.

“These small power units that we are now getting to the market are justifiable given the market’s oversold,” said Sid Mokhtari, chief market engineer at CIBC Capital Markets.

Better-than-expected corporate earnings, a potential spike in the US dollar and signs that the US 10-year yield is in the final stages of its upward movement are also supporting equities, Mokhtari said.

Wall Street also finished higher and the greenback fell against a basket of major currencies as weak economic data indicated the Federal Reserve’s aggressive policies are taking effect, while falling government bond yields boosted the momentum of the rally.

Investors fear that higher borrowing costs will send some major economies into recession.

Money markets expect the Bank of Canada to raise interest rates by three-quarters of a percentage point on Wednesday to a 14-year high of 4%.

The Toronto market’s health sector rose 6.3% as shares of cannabis producer Canopy Growth Corp rose 25.7% on plans to create a holding company to accelerate the company’s entry into the United States.

One of the other big players was Celestica Inc. Shares were up nearly 16% after the electronics company reported third-quarter results that beat analysts’ estimates.

The technology sector was up 1.8%, while the materials group, which includes precious and base metals miners and fertilizer companies, added 1.3%.

Reporting by Fergal Smith; Additional Reporting by Shashwat Chauhan in Bengaluru Editing by Alistair Bell

Our Standards: The Thomson Reuters Trust Principles.

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