TSX on pace for best weekly performance since early June

Canada's main stock index rose for the fourth straight session on Friday and was set for its best weekly gain since early June, supported by expectations of smaller interest rate hikes from the world's largest economy.

At 10:31 a.m. ET (15:31 GMT), the Toronto Stock Exchange's S&P/TSX composite index TSX was up 64.11 points, or 0.32%, at 20,408.18. It was set to gain 2% for the week and was trading above the 200-day moving average.

The financial sector (.SPTTFS) added 0.4% on Friday, while the industrials sector (.GSPTTIN) rose 0.8%.

"Most sectors are participating in this rally, despite the negative headlines and extraordinary pessimism because of this positive seasonality which is going to continue as we enter December," said Brandon Michael, senior analyst at ABC Funds.

"This technical indicator (200-day moving average) determines long-term price trends and the TSX holding above this important technical level is suggestive of a new bull market in Canadian stocks," he added.

However, on a year-to-date basis, the index is still down more than 3.7% as investors fear aggressive policy tightening by central banks could trigger a global economic downturn.

Traders are also looking forward to economic growth data for September and earnings from major Canadian banks in the following week.

Meanwhile, analysts are anticipating a 25 basis point interest rate hike by the Bank of Canada in its Dec. 7 meeting. (0#BOCWATCH)

Wall Street's main indexes were mixed, with investors monitoring consumer confidence as Black Friday sales began against a backdrop of an economic slowdown, while remaining optimistic of smaller upcoming rate hikes from the Federal Reserve.

U.S. markets will close at 01:00 p.m. ET on account of Thanksgiving.