Aug 18 (Reuters) - Canada's main stock index rose on
Thursday, as a rebound in commodity prices aided oil and
materials stocks, although worries about aggressive central bank
actions to tame inflation weighed on the global sentiment.
The Toronto Stock Exchange's S&P/TSX composite index
rose 0.19% to 20,219.82 by 9:49 a.m. ET.
Canadian energy stocks gained 1.7% as oil prices
rose nearly 2% on robust U.S. fuel consumption data and expected
falls in Russian supply later in the year.
Meanwhile, rising gold and metal prices boosted the
materials sector, which includes precious and base
metals miners and fertilizer companies.
Wall Street also wavered as U.S. Federal Reserve officials
saw "little evidence" late last month that inflation pressures
were easing, according to the central bank's meeting minutes
released on Wednesday.
"Though inflation has pulled back and we might be getting
close to a peak, it isn't anywhere close to a level that I think
central banks are happy with," said Greg Taylor, portfolio
manager at Purpose Investments.
"Either in the Fed minutes or at the Jackson Hole conference
next week, I don't see a pivot coming. The economic data isn't
really saying that we need to pull things back. And that's
probably bad news for some risk assets in the near term," he
Data on Thursday showed producer prices in Canada fell by
2.1% in July from the previous month on lower prices for energy
and petroleum products, as well as primary non-ferrous metal
Canadian stocks have rallied over 11% since hitting the
year's lowest level in mid-July on the back of upbeat earnings
and signs of cooling inflation in the United States. However,
analysts question if the recovery can continue as recession
Among single stocks, Air Canada slipped 1% after the
airline said it planned to operate flights at 79% of its
pre-pandemic capacity this summer.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Anil
D'Silva and Krishna Chandra Eluri)