TSX ends up 436.97 points, or 2.4%, at 18,881.19
Index posts its biggest gain since April 2020
Energy jumps 5.8%; oil settles 5.2% higher
Materials adds 2.1%
TORONTO, Oct 3 (Reuters) - Gains in energy shares helped
Canada's main stock index kick off the final quarter of the year
with a bang as investors looked to overcome their anxiety over a
The Toronto Stock Exchange's S&P/TSX composite index
ended up 436.97 points, or 2.4%, at 18,881.19, its
biggest daily gain since April 2020, allowing it to recoup some
recent declines. It fell 4.6% in September.
Wall Street stocks also ended with sharp gains after being
pressured through much of this year by worries that aggressive
interest rate hikes by the Federal Reserve could derail economic
growth. The Bank of Canada has also been tightening at a rapid
"Investors are starting to doubt central banks globally will
remain aggressive with fighting inflation as financial stability
risks are growing," Edward Moya, senior market analyst at OANDA,
said in a note.
British Prime Minister Liz Truss was forced into a
humiliating U-turn after less than a month in power, reversing a
cut to the highest rate of income tax that helped spark turmoil
in financial markets.
In Canada, domestic data showed that manufacturing activity
contracted for a second straight month in September as higher
borrowing costs and an uncertain economic outlook contributed to
a drop in new orders.
Boosting the Toronto market, the energy sector
climbed 5.8% as crude prices settled 5.2% higher after
Reuters reported that OPEC+ is considering reducing output by
more than 1 million barrels per day.
The materials sector, which includes precious and
base metals miners and fertilizer companies, added 2.1% as gold
and copper prices rose.
The heavily-weighted financial sector gained 1.4%,
while industrials ended 2.7% higher.
Among stocks that lost ground was Saputo Inc. It
fell 3.1% after Scotiabank cut the shares of the dairy firm to
sector perform from sector outperform.
(Reporting by Fergal Smith; Additional reporting by Shashwat
Chauhan; editing by Uttaresh.V, Anil D'Silva and Deepa