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TSX gains as U.S. economic data bolsters tech shares

Published 08/03/2022, 07:21 AM
Updated 08/03/2022, 04:45 PM
© Reuters. FILE PHOTO: A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014.  REUTERS/Mark Blinch/File Photo
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TORONTO (Reuters) - Canada's main stock index rose on Wednesday, helped by gains for technology and financial shares after encouraging U.S. economic data, but the advance was limited as a drop in oil prices weighed on energy shares.

The Toronto Stock Exchange's S&P/TSX composite index ended up 40.61 points, or 0.2%, at 19,545.94, clawing back some of the previous day's decline when geopolitical tensions gripped financial markets.

Wall Street ended sharply higher, helped by strong profit forecasts from some companies and U.S. services sector data that supported views that the economy was not in recession despite output slumping in the first half of the year.

The technology sector on the Toronto market rallied 4.6%, paced by a 10.8% jump in the shares of e-commerce giant Shopify (NYSE:SHOP) Inc, while heavily weighted financials ended 1.2% higher.

© Reuters. FILE PHOTO: A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014.  REUTERS/Mark Blinch/File Photo

Energy fell 4.2% as oil prices dropped. U.S. crude oil futures settled nearly 4% lower at $90.66 a barrel after U.S. data showed crude and gasoline stockpiles unexpectedly surged last week and as OPEC+ said it would raise its oil output target by 100,000 barrels per day.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 1.3% as copper prices fell.

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