CANADA STOCKS-TSX rises to three-week high on war conclusion hopes
By Fergal Smith
April 1 (Reuters) - Canada's main stock index rose to a three-week high on Wednesday as investors grew optimistic the Middle East war would soon end, though a fall in oil prices capped gains.
The Toronto Stock Exchange's S&P/TSX Composite Index .GSPTSE ended up 189.91 points, or 0.6%, at 32,957.95, adding to sharp gains on Tuesday and marking its highest closing level since March 11.
In March, the TSX fell 4.6%, which was its steepest monthly decline since May 2023, as investors globally worried the conflict in the Middle East could raise inflation pressures.
Wall Street also rose on Wednesday after U.S. President Donald Trump told Reuters the U.S. will be "out of Iran pretty quickly" and could return for "spot hits" if needed.
"We continue to see some optimism that the end of the war is near," said Angelo Kourkafas, a senior global investment strategist at Edward Jones.
"The key message really is that though we remain in a highly uncertain environment, so far the data points to relatively steady economic growth ... Rising earnings also can provide support."
Data on Tuesday showed Canadian GDP rose by 0.1% in January on a monthly basis, eclipsing estimates for a flat reading. An advance estimate showed the economy expanding by a further 0.2% in February.
The materials group .GSPTTMT, which includes metal mining shares, rose 3.1% as losses for the safe-haven U.S. dollar helped drive up the price of gold XAU= and copper HGc1.
Not all miners posted gains. Shares of Ivanhoe Mines Ltd IVN.TO dropped 11.6% after the company said on Tuesday an updated independent study lowered near-term production estimates for the company's copper complex in the Democratic Republic of Congo.
Both industrials and heavily weighted financials .SPTTFS ended 0.8% higher.
Of 10 major sectors, just energy .SPTTEN lost ground. It fell 3.8%, giving back some of its recent advance, as the price of WTI oil CLc1 settled 1.2% lower at $100.12 a barrel.
