TSX ends up 0.6 at 20,881.19
Posts its highest closing level since June 2022
Bond proxies benefit from rate cut hopes
TFI International adds 7.9 after acquisition

Dec 22 Reuters Canada39;s main stock index rose to an 18month high on Friday, with the index posting broadbased gains ahead of the Christmas holiday weekend as cooling U.S. inflation bolstered investor hopes of a soft landing for the economy.

The Toronto Stock Exchange39;s SPTSX composite index ended up 115.46 points, or 0.6, at 20,881.19, its highest closing level since June 2022.

For the week, the index added 1.7. It is set to be closed on Monday and Tuesday for Christmas Day and Boxing Day, respectively.

U.S. benchmark the SP 500 also gained as data showed that U.S. prices fell in November for the first time in more than 312 years, boosting financial market expectations of an interest rate cut from the Federal Reserve next March.

Equity markets are closing 2023 on a strong note, with a sharp decline in Treasury yields, the prospect of 2024 rate cuts and a coveted soft landing all on investors radar, Robert Kavcic, senior economist at BMO Capital Markets, said in a note.

The Canadian economy39;s soft patch continued for the third straight month in October and a modest growth forecast for November will further support investors39; bets on an interest rate cut in the first quarter of next year, economists said.

Stocks that tend to produce predictable cash flows, socalled bond proxies, could…