Canadian Market Up Firmly In Positive Territory; Materials Shares Rise

(RTTNews) - The Canadian market is up in positive territory around late morning on Friday, supported by gains in healthcare, materials and real estate sectors.

In addition to digesting the data on Canadian GDP, investors are also reacting to the data showing a sharper than expected deceleration in U.S. consumer price growth.

The benchmark S&P/TSX Composite Index is up 151.79 points or 0.73% at 20.917.52 nearly half an hour before noon.

Healthcare stock Tilray Inc (TLRY.TO) is up 7%. Chartwell Retirement Residences (CSH.UN.TO) is gaining about 1.2%.

In the materials sector, Torex Gold Resources (TXG.TO) is surging nearly 7%. Osisko Mining (OSK.TO) is up 5%, while K92 Mining Inc (KNT.TO), Novagold (NG.TO) and First Quantum Minerals (FM.TO) are up 3.7 to 4%. Eldorado Gold (ELD.TO), Silvercrest Metals (SIL.TO), Alamos Gold (AGI.TO), Pan American Silver Corp (PAAS.TO), Wesdome Gold Mines (WDO.TO), MAG Silver Corp (MAG.TO) and B2Gold Corp (BTO.TO) are up 2 to 3%.

Data from Statistics Canada showed Canada's economy likely grew 0.1% in November, according to preliminary estimates. In October, the economy remained relatively stable for a third straight month, with a 0.1% increase in services-producing industries, and no significant change in goods-producing industries.

According to preliminary estimates, Canada's manufacturing sales likely rose 1.2% from a month earlier in November, rebounding from a 2.9% decline in the previous month. Meanwhile, wholesale sales in Canada is estimated to have increased by 0.8% from a month earlier in November, following a 0.5% drop in October.

The data from the Commerce Department showed consumer price growth in the U.S. decelerated to 2.6% in November from a downwardly revised 2.9% in October.

The bigger than expected slowdown in consumer price growth is likely to add to optimism the Fed is poised to pivot to cutting interest rates early next year.

The Royal Bank of Canada (RY.TO) announced the acquisition of HSBC's domestic in a C$13.5 billion dollar deal. The deal is part of establishing a global banking hub in Vancouver that will support more than 1000 jobs. The hub is expected to create 440 new jobs in British Columbia. Royal Bank of Canada shares are up nearly 1%.