TSX rises in nervous trading ahead of key macro events

·1 min read
FILE PHOTO: The facade of the original Toronto Stock Exchange building is seen in Toronto

By Fergal Smith

TORONTO (Reuters) - Canada's main stock index rose on Tuesday, led by energy shares as oil prices climbed, but the index stuck within its recent sideways pattern ahead of U.S. inflation data later in the week.

The Toronto Stock Exchange's S&P/TSX composite index ended up 109.12 points, or 0.5%, at 20,928.21, but holding below last Thursday's closing level of 21,031.81, which was the highest in four weeks.

U.S. stocks also ended higher in choppy trading. Investors are awaiting U.S. inflation data on Friday amid some uncertainty that price pressures are peaking.

The Federal Reserve is on track to deliver a half-percentage-point interest rate hike next week. A high inflation reading could add to expectations of further aggressive tightening in the second half of the year.

"The market's on edge this week," said Brandon Michael, senior investment analyst at ABC Funds. "Until we get the resolution of a lot of these macro events, it's dealing with a little bit of volatility."

The Toronto market's energy group climbed 2.3%, helped by a gain of 12.7% for uranium extraction company Energy Fuels Inc..

Oil settled 0.8% higher at $119.41 a barrel, supported by supply concerns and the prospect of higher demand as China relaxes lockdowns set to control the coronavirus pandemic.

Shares of e-commerce giant Shopify Inc climbed 5.3% as shareholders voted in favor of protecting Chief Executive Officer Tobias Lutke's 40% voting stake.

That helped lift the technology sector by 0.5%, while heavily weighted financials ended 0.3% higher.

(Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Andrea Ricci)

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