Energy, real estate stocks lift TSX; focus on U.S. midterm elections


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Canada’s main stock index inched higher on Monday as gains in energy and real estate stocks offset losses in utilities, while investor focus was on the upcoming U.S. midterm elections which will determine control of Congress.

By 10:42 a.m. ET (15:42 GMT), the Toronto Stock Exchange’s S&P/TSX composite index rose 0.16% to 19,481.07.

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Energy stocks rose 1.1% as oil prices stabilized near $100 a barrel, as support from a weaker dollar and recovering Chinese crude imports met renewed demand concerns linked to China’s stringent COVID containment approach.

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Investors’ focus this week will be on U.S. mid-term elections for cues on policy direction, as well as October inflation data to gauge the Federal Reserve’s monetary policy tightening stance.

“Markets were down fairly aggressively last week, so there’s a tendency for markets to do the opposite of (that) before going into an event, so it could be up for a bounce once these events clear,” said Greg Taylor, portfolio manager at Purpose Investments.

Technology stocks jumped 0.9%, while utilities slipped 0.8% and 0.7%, respectively.

Among single stocks, Summit Industrial Income REIT jumped 25% after Singapore’s sovereign wealth fund GIC and Canada’s Dream Industrial REIT said they were buyingthe company for about C$4.46 billion, taking the real estate index up 2.7%.

Cronos Group crashed 8.9% after the weed company reported a bigger-than-expected loss, hit by a weakening Canadian dollar and lower cannabis flower sales in Canada.

Mining company SilverCrest Metals jumped 8.6% after it declared commercial production at its Las Chispas site.

Equipment marketplace Ritchie Bros Auctioneers Inc tumbled 19.8% after it said it would buy U.S.-based IAA Inc in a cash-and-stock deal valued at about $7.3 billion including debt. (Reporting by Shashwat Chauhan in Bengaluru; Editing by Shailesh Kuber)


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