* Canadian dollar rises 0.6 percent against the greenback
* Canada manufacturing growth slows to 21-month low in October
* Price of U.S. oil falls 0.3 percent
* Bond prices trade lower across the yield curve
TORONTO, Nov 1 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Thursday, rebounding from a seven-week low the day before, as investors began the new month with more appetite for risk and the greenback broadly declined.
Analysts said a flood of end-of-month buying of U.S. dollars on Wednesday had ceased with the start of November. a brutal October for stocks, risk sentiment globally was boosted by a string of robust earnings reports and Chinese stimulus plans. runs a current account deficit and exports many commodities, so its economy could benefit from improved prospects for the flow of trade or capital.
The loonie will rally over coming months on a recovery in demand for riskier assets and as a solid domestic economy supports more interest rate hikes from a hawkish central bank, according to a Reuters poll. Wednesday, Bank of Canada Governor Stephen Poloz repeated his message that interest rates would need to keep rising to meet the central bank's inflation target. 9:57 a.m. (1357 GMT), the Canadian dollar CAD=D4 was trading 0.6 percent higher at 1.3081 to the greenback, or 76.45 U.S. cents. The currency, which touched its weakest in more than seven weeks on Wednesday at 1.3170, traded in a range of 1.3071 to 1.3167.
The price of oil, one of Canada's major exports, was on course for its fourth consecutive week of decline, pressured by rising crude supply. U.S. crude CLc1 prices were down 0.3 percent at $65.11 a barrel. IHS Markit Canada Manufacturing Purchasing Managers' index (PMI), a measure of manufacturing business conditions, fell to a seasonally adjusted 53.9 last month, its lowest since January 2017, from 54.8 in September. jobs data for October and September trade data are due on Friday.
Canadian government bond prices were lower across the yield curve, with the two-year CA2YT=RR down 0.5 Canadian cent to yield 2.341 percent and the 10-year CA10YT=RR falling 10 Canadian cents to yield 2.506 percent.