CANADA STOCKS-TSX pares weekly decline as Fed rate cut bets rise
By Fergal Smith
Nov 21 (Reuters) - Canada's main stock index clawed back much of its weekly decline on Friday as financial and technology shares climbed on rising hopes that the Federal Reserve will cut U.S. interest rates in December.
The S&P/TSX composite index .GSPTSE ended up 254.10 points, or 0.9%, at 30,160.65. For the week, the index was down 0.5%.
Wall Street's main indexes also rallied after New York Fed President John Williams said the central bank can still cut rates "in the near term" without putting its inflation goal at risk. Investors see a roughly 60% chance the Fed will lower borrowing costs next month, up from 20% before the release of U.S. jobs data on Thursday. 0#USDIRPR
"It seems like the macro concerns regarding the Fed and what they're thinking ... are superseding corporate earnings, which have been very strong," said Ian Chong, a portfolio manager at First Avenue Investment Counsel Inc.
"At some point, value investors will dip back into the market, especially high quality companies, given the strong Q3 corporate earnings."
The technology sector .SPTTTK, which has been buffeted in recent days by concern about the massive level of artificial intelligence spending, rose 1.3%, with e-commerce company Shopify Inc SHOP.TO adding 2.1%.
The United Arab Emirates said it will invest up to $50 billion in Canada under a framework that includes projects in artificial intelligence, energy and mining sectors.
The materials group .GSPTTMT, which includes metal mining shares, added 1.1% as copper HGc1 prices rose.
Financials .SPTTFS were up 1.3% and consumer discretionary .GSPTTCD added 2.4%.
Shares of auto parts supplier Magna International Inc MG.TO climbed 5.6%. China's Guangzhou Automobile Group will build its electric AION V model at a Magna facility in Austria, the two companies said on Thursday.
Energy .SPTTEN was the only one of 10 major sectors to end lower. It fell 0.8% as the price of oil CLc1 settled 1.6% lower at $58.06 a barrel.
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