CANADA EQUITIES-Toronto market overcomes inflation fears to end higher
(Add analyst quotes and details throughout, update prices)
* TSX ends at 0.04%
* Technology increases by 1%; materials add 0.6%
* Energy drops by 2.2%
* Oil settles 1.9% lower
TORONTO, Oct. 6 (Reuters) – The main Canadian stock index edged up Wednesday, as optimism about the possibility of a U.S. debt ceiling deal offsetting concerns about rising inflation and falling prices. energy stocks, with the index recovering previous losses.
The Toronto Stock Exchange’s S & P / TSX Composite Index ended up 8.23 points, or 0.04%, at 20,191.66, with a close higher on Wall Street.
U.S. Senate Republican Mitch McConnell has said his party will support an extension of the federal debt ceiling until December. This would avoid a historic default which would entail a heavy economic toll.
Investor sentiment has been put to the test in recent days by a massive sell-off of tech stocks, the potential for the Federal Reserve to cut economic stimulus and fears that soaring energy prices will amplifies inflationary pressures, derailing the global economic recovery.
On Monday, the Toronto market posted its lowest closing level in two and a half months at 20,052.25.
But some technical indicators, such as measures of magnitude, showed encouraging signs, said Sid Mokhtari, market technician at CIBC World Markets.
“We think the insiders of the market have reached a point where we are approaching some kind of bottom,” Mokhtari said.
The information technology group rose 1%, while the materials sector, which includes precious and base metal miners and fertilizer companies, added 0.6%.
Energy fell 2.2%, returning to its highest level in more than two years the previous day.
U.S. oil futures were down 1.9% to $ 77.43 a barrel as an unexpected rise in U.S. crude inventories prompted buyers to pause after recent sizzling gains.
The heavily weighted financials sector ended down 0.2%. (Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru, editing by Marguerita Choy)