Stocks jumped sharply Wednesday, as investors digested a highly anticipated interest rate decision by the Bank of Canada, with energy stocks, bolstered by higher oil prices, and materials, leading the rally.
The S&P/TSX Composite Index hiked 119.95 points to begin midweek Wednesday at 15,269.09
The Canadian dollar faded 0.21 cents to 77.37 cents U.S.
The Bank of Canada did as expected this morning, raising its trendsetting rate a quarter-point to 0.75%, the first hike in nearly seven years, and perfectly in line with what expert were saying would happen.
Energy stocks, as mentioned, led the festivities, as Encana Corporation boosted 50 cents, or 4.4%, to $11.98, while Suncor Energy gained 43 cents, or 1.2%, to $37.69
Home Capital Group appointed Yousry Bissada as its chief executive, bringing to an end a search it started in March after it terminated the employment of former CEO Martin Reid.
Home shares acquired 31 cents, or 2.1%, to $14.90.
Canaccord Genuity started coverage on Aveda Transportation with speculative buy rating. Aveda shares closed Tuesday at 64 cents.
Barclays raised the target price on Sun Life Financial to $53.00 from $52.00. Sun Life added 34 cents to $47.09.
ON BAYSTREET
The TSX Venture Exchange regained 4.32 points to 754.22.
All 12 TSX subgroups gained ground, as energy stocks soared 1.7%, consumer staples ballooned 1.2%, and materials were better by 1%.
ON WALLSTREET
U.S. equities rose on Wednesday as investors parsed through prepared remarks from the top-ranking Federal Reserve official.
The Dow Jones Industrials hurtled skyward 154.53 points to 21,563.60. Shares of 3M contributed the most gains on the 30-stock index.
The S&P 500 regained 17.17 points to 2,442.70, with real estate and energy leading advancers.
The NASDAQ took on 51.31 points to 6,244.62, as shares of PayPal hit a record high.
Fed Chair Janet Yellen said the central bank is likely to start reducing its massive $4.5-trillion portfolio later this year. The Fed bolstered the portfolio, known as the balance sheet, as a way to stimulate the economy during and after the financial crisis.
Yellen is expected to deliver her remarks in front of Congress later on Wednesday. She is also expected to answer questions about monetary policy and the health of the U.S. economy.
Prices for the benchmark 10-year Treasury note dipped Wednesday, lowering yields to 2.33% from Tuesday’s 2.36%. Treasury prices and yields move in opposite directions
Oil prices gained $1.02 to $46.06 U.S. a barrel
Gold prices recovered $3.70 to $1,218.40 U.S. an ounce.
