Energy and consumer staples drive TSX near 6-week peak

Canada's main index of stocks continued to rise on Thursday. This was mainly due to gains in energy and consumer staples, but investors were still curious about the policy decisions made by U.S. president Donald Trump.

If gains continue, the S&P/TSX Composite Index of the Toronto Stock Exchange could record its eighth consecutive winning session.

The TSX's heavyweight energy sector was the best performing, gaining 1.2% thanks to the firm oil price.

Consumer staples, which grew by 0.8%, also contributed to the increase.

Metal mining shares, however, limited overall gains by falling 1% as gold prices fell after reaching a near-three-month high the previous session.

The markets will be waiting for Trump's virtual speech at the World Economic Forum at Davos, which is scheduled to begin at 11:00 am ET. ET for more clarity on his policies. "I believe that what Trump is saying to the world is the U.S. has opened for business, and he's done away with a number of restrictive policies and rules within the U.S. in his first few days as president," said Allan Small. Senior investment advisor with Allan Small Financial Group at iA Private Wealth.

Trump's tax-cutting and regulatory reduction stance could be beneficial to corporate profits.

Tariffs

Ottawa has kept investors on edge.

Data released Thursday shows that Canadian retail sales remained unchanged from October to November. Statista Canada reported that higher sales at parts and motor vehicle dealers were offset by lower food and beverage sales.

The number of Americans who filed new claims for unemployment benefits increased marginally last week. This suggests that the solid job growth in January will likely continue.

Birchcliff Energy, a company that produces natural gas and intermediate oil, rose by the most among individual stocks at 8,5% after TD Cowen upgraded their rating to 'buy.'

(source: Reuters)