TSX set for eighth straight week of gains as economic data adds to optimism

By Twesha Dikshit

Canada's main stock index advanced with broad-based gains after key domestic GDP and in-line U.S. inflation data added to investor optimism.

Toronto's S&P/TSX composite index TSX rose 0.3% to 29,817.85 points by 09:55 a.m. ET (1355 GMT), and was on track for eight consecutive weeks of gains.

Canada's monthly GDP rebounded from three months of contraction to grow by 0.2% in July, with mining, manufacturing and wholesale trade boosting growth.

"With a 0.2% print, we're in a very slow growth economy ... so I would agree that there would be implications on interest rates here," said Robert Gill, portfolio manager at Fairbank Investment Management.

" has been quite strong recently, although just in the last week it's been pulling back a bit. Some of the market participants are simply just locking in some gains here. It's been a very heated market and they're rotating out of some overextended sectors, in particular technology."

The technology index TTTTK led the declines, with heavyweight e-commerce firm Shopify SHOP falling 1%.

Consumer non-cyclicals (.SPCDNX) and gold miners (.SPTTGD) were among the top gainers on the day.

Among individual stocks, Perpetua Resources PPTA jumped 17.3% after saying it was in talks with Glencore GLEN, Trafigura [RIC:RIC:TRAFG.UL], Clarios and Sunshine Silver about partnerships to refine antimony in the U.S.

Bus and coach maker NFI Group NFI dropped 12% after providing updates for the third quarter of the year and saying it was actively responding to numerous bids.

U.S. Personal Consumption Expenditures index was in-line with expectations, increasing bets that the Federal Reserve might further lower rates this year.

U.S. President Donald Trump announced a fresh set of tariffs on branded drugs, heavy-duty trucks and furniture that will come into effect next week.

Meanwhile, Canadian Prime Minister Mark Carney met his British counterpart Keir Starmer to discuss deepening trade ties.