Against a backdrop of disappointing economic data and increasing uncertainty in the strength of the global economic recovery, the Toronto Stock Exchange is on one of its hottest streaks of the year.
On Thursday, Canada’s main stock market was up for a sixth straight day, matching a run it had from April 19 to 26. If it rises again Friday, it would be into its longest string of gains since going eight straight in mid-February.
The S&P/TSX composite index on Thursday closed up 24.91 points, or 0.21 per cent, at 11,945.97, with materials stocks providing most of the strength.
This came despite wholesale trade numbers for Canada in April and initial jobless claims in the United States for last week coming in worse than economists were expecting.
Recently, things such as Canadian manufacturing data, and housing starts and employment growth in the U.S., have failed to meet expectations.
Nonetheless, the TSX has managed to gain more than four per cent since its last negative day on June 9. Much of the story in recent days has been the market’s heavy contingent of gold stocks gaining as investors seek a safe haven in the face of economic uncertainty.
On Thursday, Barrick Gold Corp. was up 3.97 per cent to $46.10, while Goldcorp Inc. rose 2.24 per cent to $6.15.
The junior TSX Venture composite was up 19.38 points, or 1.33 per cent, to 1,481.38.
On the New York Mercantile Exchange, gold rose $18.20 to $1,248.70 US an ounce, though crude oil was down 88 cents to $76.79 US a barrel.
“We’re being helped by the price of gold, and gold is a major factor in our market,” said Fred Ketchen, director of equity trading with ScotiaMcLeod in Toronto.
But Ketchen added that, despite the occasional setback, a great deal of confidence remains in the Canadian economy. He said this comes from a number of things, such as the county’s resilience throughout the recent global recession, but factors such as Canada’s performance and hosting of the recent Winter Olympics also play a role.
“There still seems to be an unusually strong vote of confidence in what is going on in this country,” Ketchen said.
The Canadian dollar on Thursday was down 15 basis points to 97.37 cents US.
U.S. markets were also up Thursday. The Dow Jones industrial average gained 24.71 points, or 0.24 per cent, to 10,434.17. The Nasdaq composite index rose 1.23 points, or 0.05 per cent, to 2,307.16.
European markets saw moderate gains, while there were mixed results in Asia, with Japanese stocks declining and Hong Kong shares rising.
