Saturday, September 14, 2013

Hong Kuang Commodities: TSX climbs on China data


TORONTO (Reuters) - Canada's main stock index rose on Monday after shares of natural resource companies benefited from positive data out of China, but declines in the price of gold and oil capped those gains.

Still, a surge in shares of Potash Corp (POT.TO: Quote) and BlackBerry (BB.TO:Quote) also supported the overall market.

But fears about military action in Syria and concerns that the U.S. Federal Reserve might soon begin dialing back its stimulus measures continued to unnerve investors.

"It's a muted rally. We really haven't got the lift from the Chinese export news that one would have expected," said Elvis Picardo, strategist at Global Securities in Vancouver. "There's too much uncertainty for investors to jump into volatile groups like energy and commodities."

"Investors are hoping that any fallout from the (Syrian) conflict wouldn't be too severe and it would be contained."

Data showed Chinese export growth topped expectations in August.

Despite the export-focused Canadian market's exposure to the Chinese economy, a major consumer of commodities, the TSX underperformed the S&P 500 .SPX on Monday.


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