Canadian Stocks Edge Higher, Aided By Gains In Materials, IT Sectors

(RTTNews) - Canadian stocks advanced on Wednesday, driven by an increase in gold prices due to safe-haven demand that consequently pushed up materials sector as well as a jump by IT stocks ahead of AI-giant Nvidia's earnings.

After opening above yesterday's close, the benchmark S&P/TSX Composite Index remained volatile throughout the session before finally settling at 30,278.41, up by 241.95 points (or 0.81%).

Eight of the 11 sectors posted gains today, with the IT sector leading the pack.

Gold prices edged higher today with traders shying away from risky moves as they await official key economic releases from the U.S., which resulted in gains for mining stocks.

The recent downturn seen in IT stocks, both in the U.S. and Canada, due to apprehension over an "AI bubble" reversed today ahead of third quarter results of U.S.-based chipmaker Nvidia. Having become the first company in late October to reach a market capitalization of $5 trillion, Nvidia's performance could influence broader risk sentiment across the technology sector.

After successfully securing enough votes to pass his first budget in the parliament, Canadian Prime Minister Mark Carney is heading to the U.A.E. to seek investments from sovereign wealth funds and the private sector to strengthen the Canadian economy that is suffering from the U.S. trade war.

Carney is focused on partnering with the U.A.E. in energy, infrastructure, and AI sectors.

U.S. President Donald Trump's tariff of 35% on all Canadian imports to the U.S. has hit hard on Canadian businesses, particularly steel, aluminum, automobile, and soft lumber industries.

In October, Stellantis announced plans to move its Jeep Compass production to Illinois and General Motors announced ending its electric delivery van production at its Ingersoll, Ontario plant, both moves leading to the retrenchment of thousands of employees.

Data released by Statistics Canada on Monday showed that the headline inflation rate in Canada fell to 2.20% in October from 2.40% in the previous month.

The trimmed-mean core inflation rate which is closely tracked by the Bank of Canada inched down to 3.00% from 3.10% in September.

Median price growth was up only 0.1% but the three-month average remained above 2.5%.

Annual core inflation inched up to 2.90% from 2.80% in September.

As the dip in inflation was largely due to a slide in food prices and gasoline prices, economists have lowered their expectations for another rate cut by BoC in its upcoming meeting next month.

Today, while speaking in Quebec City, BoC Deputy Governor Nicolas Vincent warned that Canada is "stuck in a vicious circle" where sluggish business investment limits output-per-hour-worked and wage growth, reducing consumption and demand, hurting productivity.

On the business front, Metro Inc. reported earnings results. For the full year, the company reported a sales of C$22,006.7 million compared to C$21,219.9 million a year ago. Net income was C$1,017 million compared to C$928.8 million a year ago. Basic earnings per share from continuing operations was C$4.65 compared to C$4.13 a year ago.

Major sectors that gained in today's trading were IT (2.34%), Materials (1.31%), Industrials (0.84%), and Consumer Staples (0.52%).

Among the individual stocks, Mda Ltd (5.50%), Celestica Inc (4.90%), Shopify Inc (4.60%), Quarterhill Inc (3.30%), G Mining Ventures Corp (5.37%), Skeena Resources Ltd (4.74%), and Ero Copper Corp (3.90%) were the prominent gainers.

Utilities, Real Estate, Financials, and Consumer Discretionary were the other sectors that lost anywhere from 0.05% to 0.09%.

Major sectors that lost in today's trading were Communication Services (0.16%) and Healthcare (0.97%).

Among the individual stocks, Bausch Health Companies Inc (1.96%), Curaleaf Holdings Inc (1.47%), Quebecor Inc (0.91%), and BCE Inc (0.43%) were the notable losers.