Tech shares help lift Toronto market to two-month high

Heavily-weighted financials added 0.4 per cent and technology ended nearly 1 per cent higher.

Shares of First Quantum Minerals Ltd remained volatile, falling 3.5 per cent. (Image credit: Reuters)

Canada's main stock index rose on Monday to a two-month high, helped by gains for financial and technology shares, as recent evidence that inflation is cooling continued to underpin investor sentiment. The Toronto Stock Exchange's S&P/TSX composite index ended up 70.70 points, or 0.35 per cent, at 20,246.47, its highest closing level since September 18. Wall Street also notched gains as U.S. Treasury yields eased. Investors have grown more optimistic that borrowing costs have peaked following data last week showing a slowdown in U.S. inflation.

"We're seeing basically inflation head lower around the world, and I don't think Canada's inflation data will be any different," Jennifer Lee, senior economist at BMO Capital Markets said.

Canada's consumer price index report, due on Tuesday, is expected to show inflation cooling to 3.2 per cent in October from 3.8 per cent in September.

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Canada's economy is flirting with recession, and the downturn could worsen now that a period of rapid growth in the United States is expected to end, raising bets on the BoC shifting to interest rate cuts sooner than previously thought.

Heavily-weighted financials added 0.4 per cent and technology ended nearly 1 per cent higher.

Energy was up 0.2 per cent as the prospect of further OPEC supply cuts boosted oil prices. U.S. crude oil futures settled 2.25 per cent higher at $77.60 a barrel.

Shares of First Quantum Minerals Ltd remained volatile, falling 3.5 per cent.

The company will carry out maintenance at its Panama mine from November 23 due to coal supplies being blocked by protesters opposing the government's contract with one of the world's biggest and newest copper mines, two sources familiar with the discussions said.

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