CANADA STOCKS-TSX bounces back as tech, consumer staples lead gains
By Utkarsh Hathi
Feb 2 (Reuters) - Canada's main stock index rose on Monday, recouping some of the previous session's steep losses, as broad-based gains led by consumer staples and technology shares overshadowed declines in the energy sector.
The S&P/TSX Composite Index .GSPTSE was up 0.73% at 32,156.50 points as of 10:31 a.m. ET.
The index had recorded its biggest single-day drop since April on Friday, after precious metal prices and mining stocks plummeted following Kevin Warsh's nomination as the next U.S. Federal Reserve chair.
On Monday, TSX's consumer staples index .GSPTTCS led gains with a 2% jump, followed by information technology stocks .SPTTTK, which rallied 1.7% after losing more than 8% in the previous two sessions.
The materials index .GSPTTMT, which includes mining shares, added 0.5% despite the continuing selloff in precious metals. The index had posted its biggest single-day drop since October 2008 on Friday.
"We had an extreme reaction to the Fed chair announcement on Friday. They (metals) were due for a correction," said Colin Cieszynski, chief market strategist at SIA Wealth Management.
"Now things are just kind of pausing to see where the waters are at."
Meanwhile, energy stocks .SPTTEN fell 1%, as oil prices retreated after U.S. President Donald Trump said on Saturday that major crude producer Iran was "seriously talking" with Washington.
On the macroeconomic front, Canada's manufacturing sector expanded for the first time in a year in January, data showed on Monday, as sentiment improved to a three-month high amid expectations of economic growth.
Meanwhile, Trump, who threatened Canada with a 100% tariff last week, said on Saturday that the U.S. would respond in a significant way if the country proceeds with its trade agreement with China.
Among notable movers, shares of Eldorado Gold ELD.TO plunged 10.3% after the miner said it would acquire Foran Mining FOM.TO in a deal valuing the copper-focused developer at about C$3.8 billion ($2.79 billion).
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