PrintCANADA STOCKS-TSX rises as Middle East tensions ease; BoC rate call awaited
BY Reuters | ECONOMIC | 10:25 AM EDT(Updates prices and details throughout)
* TSX up 0.6%
* BoC rate decision awaited
By Tharuniyaa Lakshmi
June 9 (Reuters) - Canada's main stock index rose on Tuesday as easing Middle East tensions lifted global sentiment, ahead of the Bank of Canada's rate decision this week.
At 10:09 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 0.6% at 34,717.89 points.
* Iran and Israel said on Monday that they had halted attacks on each other after an appeal from U.S. President Donald Trump, settling back into a tenuous ceasefire announced on April 8.
* "Geopolitical tensions have simmered down, and investors are kind of looking through them and focusing more on the economic backdrop, which is still pretty constructive for equities," said Michael Dehal, a senior portfolio manager at Dehal Investment Partners at Raymond James.
* "We have some economic data coming out this week, including the Bank of Canada's rate decision, which we largely expect to be unchanged," he added.
* Investors will closely watch the central bank's interest rate decision due on Wednesday for cues on the policy outlook.
* The BoC is expected to hold rates steady this month, while traders have priced in a little over one 25-basis-point hike by year-end, according to LSEG data.
* U.S. consumer prices data for May, due on Wednesday, will also be closely watched for fresh clues on how the rise in energy prices due to the Iran war is impacting inflation.
* Nine of the 10 TSX sectors traded higher, with energy stocks being the lone laggard, down 2%, as oil prices fell amid easing Middle East tensions.
* Consumer discretionary stocks led gains, with
apparel maker Gildan Activewear
* The materials group, which includes metal
mining stocks, gained 1.1%, with Seabridge Gold
