Equities in Canada’s biggest market rose to a seven-month high on Wednesday, helped by strength in shares of Bank of Montreal after the lender reported quarterly results and gains in the energy sector following a jump in the oil price.
The S&P/TSX Composite Index climbed 104.01 points to greet noon Wednesday at 14,056.86
The Canadian dollar gained 0.26 cents to 76.47 cents U.S.
Among energy issues, Suncor Energy Inc gained 1.1% percent to $35.79, and Canadian Natural Resources advanced 2.5% to $39.07.
BMO kicked off the Canadian bank earnings season by reporting a slightly lower-than-expected quarterly profit and setting aside more funds to cover losses on bad loans, but raised its dividend. The stock rose 0.8% to $83.88.
Among rival banks, Royal Bank of Canada added 0.9% to $79.25, and Bank of Nova Scotia rose 1.2% to $64.53.
The gold-mining sector extended a decline after a sharp fall in the previous session. Barrick Gold Corp dropped 3% to $21.58.
Economically speaking, the Bank of Canada maintained its target for the overnight rate at 0.5%. The Bank Rate is correspondingly 0.75% and the deposit rate is 0.25%. The central bank said the economy would shrink in the second quarter as a result of damage from the massive Alberta wildfires before rebounding later in the year.
ON BAYSTREET
The TSX Venture Exchange dropped 3.95 points to 671.36.
All but three of the 13 TSX subgroups gained ground, most notably, metals and mining, up 3.4%, energy, ahead 1.8%, and materials, up 1.3%.
The three laggards were consumer staples, off 0.2%, real-estate, down 0.1%, and utilities, hesitating 0.04%.
ON WALLSTREET
U.S. stocks traded higher Wednesday after posting their best day since March as investors eyed oil prices and overseas news.
The Dow Jones Industrials gained 151.93 points midday to 17,857.98, with Goldman Sachs gaining most.
The S&P 500 was positive 14.18 points to 2,090.24. Materials, energy and financials led S&P 500 advancers in late-morning trade.
The NASDAQ Composite gained 26.18 points to 4,887.24
U.S. crude oil futures came off highs after weekly crude inventories from the EIA showed a drawdown of 4.23 million barrels.
Earlier, oil topped $49.00 U.S. a barrel to hit fresh highs for the year so far. WTI last traded above $50.00 U.S. a barrel in mid-October.
American Petroleum Institute data released late Tuesday showed U.S. crude stocks fell by more than five million barrels last week, double analyst expectations, while gasoline inventories increased and distillate stocks drew
In economic news, the Markit Flash U.S. services PMI for May was 51.2, down from 52.8 in April and well below the long-run survey average of 55.6
Elsewhere, the U.S. advance April goods trade deficit was $57.53 billion, the U.S. Department of Commerce said.
The Federal Housing Finance Agency House Price Index rose 0.7% in March from the prior month.
Total mortgage application volume increased 2.3% for the week on a seasonally-adjusted basis, a nearly 24% rise year-over-year, according to the Mortgage Bankers Association.
Prices for the 10-year Treasury were unchanged, keeping yields at Tuesday’s 1.86%.
Oil prices gained 25 cents a barrel to $48.87 U.S.
Gold prices were down $3.40 to $1,223.81 U.S. an ounce.
Related Stories
