Canadian Stocks Extend Upward Move Amid Optimism About Chinese Stimulus

(RTTNews) - Extending the upward move seen over the two previous sessions, Canadian stocks moved mostly higher during trading on Tuesday.

The benchmark S&P/TSX Composite Index pulled back off its highs late in the session but still closed up 146.03 points or 0.7 percent at 20,421.85, its best closing level in a month.

The strength on Bay Street partly reflected optimism about additional Chinese stimulus leading to an increase in demand for raw materials.

China's consumer inflation hit an 18-month low in March and producer price deflation deepened further, creating room for the central bank to potentially ease its monetary policy.

Reflecting strength in the materials sector, the S&P/TSX Capped Materials Index jumped by 1.3 percent on the day.

A rebound by the price of crude oil also contributed to notable strength among energy stocks, while healthcare stocks gave back ground after surging on Monday.