By Shashwat Chauhan
(Reuters) -Canadian stocks rose on Tuesday, echoing an upbeat sentiment on Wall Street as Treasury yields fell, while top cannabis producer Canopy Growth surged on plans to create a holding company to speed up its entry into the United States.
Shares of Canopy Growth jumped 21.9%, among the top gainers on the TSX index, as the deal is expected to give the company a leading market share in the United States as soon as it is legally possible.
The wider healthcare index, which houses other cannabis stocks, jumped 6.9%.
At 10:32 a.m. ET (1432 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 151.31 points, or 0.8%, at 19,069.71.
Meanwhile, Wall Street indexes rallied as U.S. bond yields fell on hopes of the Federal Reserve will dial down its ultra-hawkish rhetoric in its fight against inflation. [.N]
Earnings from megacap companies including Microsoft Corp, Alphabet Inc and Apple Inc could set the tone on Wall Street this week.
“Markets should be calm waiting for a hint of direction from the big tech companies reporting this week,” said Greg Taylor, portfolio manager at Purpose Investments.
Meanwhile, traders are placing a 73.9% chance of another supersized 75-basis-points hike by Canada’s central bank on Wednesday, which could take the overnight lending rate, already at a 14-year high, to 4%.
Among other single stocks, Celestia Inc jumped 18.7% after the electronics company reported third-quarter results that beat analysts’ estimates.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Krishna Chandra Eluri)