TSX posts biggest gain in six months as cyclical shares rally

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TSX ends up 1.58% at 22,225.61

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Posts its biggest gain since Feb. 15

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Energy gains 2.02%; oil settles up 1.3%

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Canadian Tire jumps 7.74% on earnings beat

By Fergal Smith

Aug 8 - Canada's main stock index climbed by the most in six months on Thursday, as stocks that are sensitive to the economic outlook led a broad-based rally after U.S. jobless claims data eased fears of a slowdown in activity.

The Toronto Stock Exchange's S&P/TSX composite index ended up 344.66 points, or 1.58%, at 22,225.61, its biggest advance since Feb. 15.

It follows four straight days of declines, with the index posting on Wednesday its lowest closing level in nearly six weeks.

"Gains have been led by the cyclical sectors, like financials and energy, because the U.S. numbers have eased concerns about a slowdown in the U.S. economy," said Elvis Picardo, a portfolio manager at Luft Financial, iA Private Wealth.

U.S. stocks also jumped after the number of Americans filing new applications for unemployment benefits fell more than expected last week.

"The market is really being roiled by every incoming piece of economic data and that's usually the case when you have inflection points like the present," Picardo said.

"There is a big tug of war as far as investor sentiment is concerned, and that's between lingering hopes of a soft landing and fears that the U.S. is slowing faster than expected."

All 10 major sectors on the Toronto market gained ground, including the economically sensitive and heavily weighted financials group.

It ended 1.45% higher, with shares of Manulife Financial Corp rising 2.47% after the insurer reported better-than-expected quarterly profit.

Energy rose 2.02% as the price of oil settled up 1.3% at $76.19 a barrel. Gold and copper prices also climbed, boosting metal mining shares.

The materials group, which includes metal miners and fertilizer companies, added 1.74% and technology was up 3.04%.

Canadian Tire Corporation was a standout. Its shares jumped 7.74% after the company beat quarterly earnings estimates.

This article was generated from an automated news agency feed without modifications to text.