Markets hailed the decision by the Bank of Canada Wednesday morning, as much of the suspense surrounding higher interest rate subsided.
The S&P/TSX Composite Index was off its highs of the morning, still positive by 21.62 points to greet noon Wednesday at 15,170.76
The Canadian dollar rocketed 0.81 cents to 78.24 cents U.S.
Consumer staples had the best time of it Wednesday morning, as Alimentation Couche-Tard picked up $2.06, or 3.4%, to $62.21. while Loblaw Companies improved 33 cents to $71.13.
Among telecoms, BCE grew seven cents to $57.95, while Rogers Communications gained 53 cents to $61.91.
Energy stocks climbed, as Encana Corporation rocketed 16 cents, or 1.4%, to $11.64.
Consumer discretionary stocks were on the down side, as Canadian Tire doffed 62 cents a share to $142.96.
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.
ON BAYSTREET
The TSX Venture Exchange gained 5.26 points to 755.16
Eight of the 12 TSX subgroups gained ground, as consumer staples picked up 0.9%, while telecoms and energy each gained 0.6%
The four laggards were weighed most by consumer discretionary stocks, down 0.7%, gold fell 0.6%, and materials were off 0.4%.
ON WALLSTREET
U.S. equities went skyward on Wednesday as investors pored over prepared remarks from the top-ranking U.S. Federal Reserve official.
The Dow Jones Industrials surged 128.05 points to 21,537.12, and hit a record intraday high. Shares of Boeing contributed the most gains on the 30-stock index.
The S&P 500 gained 17.65 points to 2,443.18, with real estate and energy leading advancers.
The NASDAQ took on 61.66 points, or 1%, to 6,254.96, 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.
