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CANADA STOCKS-TSX retreats from record high as materials lose ground

Published 2017-02-14, 11:07 a/m
© Reuters.  CANADA STOCKS-TSX retreats from record high as materials lose ground
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* TSX down 35.88 points, or 0.23 percent, at 15,720.70

* Six of the TSX's 10 main groups were lower

TORONTO, Feb 14 (Reuters) - Canada's main stock index dipped on Tuesday after five straight days of gains that took it to an all-time high, as the materials group lost ground and investors weighed testimony from Federal Reserve Chair Janet Yellen.

At 10:36 a.m. ET (1536 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 35.88 points, or 0.23 percent, at 15,720.70.

The Fed will probably need to raise interest rates at an upcoming meeting, Yellen said, although she flagged considerable uncertainty over economic policy under the Trump administration. prospect of U.S. economic stimulus has helped support stocks since the U.S. presidential election on Nov. 8. The TSX climbed 7 percent in that time, helped by a 13 percent gain for financials as bond yields climbed.

Higher bond yields reduce the value of insurance companies' liabilities and increase banks' net interest margins.

Financials reversed earlier losses on Tuesday to rise 0.1 percent, led by a 0.9 percent gain for Manulife Financial Corp MFC.TO to C$24.90.

But the materials group, which includes precious and base metals miners and fertilizer companies, lost 0.8 percent.

Teck Resources Ltd TECKb.TO fell 2.5 percent to C$32.48 as copper pared some recent gains, while Goldcorp Inc G.TO retreated 1.5 percent to C$21.59.

Copper prices CMCU3 declined 0.7 percent to $6,062 a tonne, and gold futures GCc1 rose 0.1 percent to $1,226.1 an ounce. MET/L GOL/

Six of the index's 10 main groups fell, with the utilities group sliding 1.2 percent and energy dipping 0.1 percent even as oil prices rose.

U.S. crude CLc1 was up 1.1 percent to $53.50 a barrel, supported by an effort led by the Organization of the Petroleum Exporting Countries to cut output. O/R

TMX Group Ltd X.TO gained 2.4 percent to C$73.00 after it reported better-than-expected fourth-quarter results, and its chief executive officer expressed optimism about the initial public offering pipeline. Corp CCO.TO climbed 3.1 percent to C$15.82. BMO raised its rating and price target on the stock. domestic data, home prices rose in January as values in the hot Toronto market climbed even further and Vancouver prices picked up after three months of declines, the Teranet-National Bank Composite House Price Index showed.

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