Canada's main stock index opened higher on Wednesday, as energy stocks tracked stronger oil prices and concerns around the new coronavirus variant Omicron eased.
The S&P/TSX Composite recovered 214.33 points, or 1%, to open Wednesday at 20,874.72.
The Canadian dollar regained 0.20 cents at 78.48 cents U.S.
Royal Bank of Canada reported a jump in quarterly profit on Wednesday, as strong growth in its wealth management and capital markets businesses offset weakness in the investor and treasury services units.
RBC shares picked up 31 cents to $126.61.
Michigan's governor on Tuesday said she would dismiss her lawsuit against Enbridge’s Line 5 oil pipeline in federal court, clearing the way for the Midwestern state's attorney general to pursue a separate case in state court.
Enbridge shares perked 47 cents, or 1%, to $48.40.
National Bank of Canada cut the price target on Agnico Eagle Mines to $80.00 from $82.00. Agnico shares took on 56 cents to $64.24.
National then resumed trading on MAG Silver with an outperform rating. MAG shares picked up 17 cents to $21.43.
Scotiabank raised the target price on Park Lawn Corp. to $46 from $45.50. Park Lawn shares advanced 57 cents, or 1.4%, to $41.17.
On the economic slate, Statistics Canada reported that building permits increased 1.3% in value to $10.3 billion in October, led by gains in British Columbia (+15.0%) and Ontario (+4.5%).
Also, Markit Canada’s Manufacturing Purchasing Managers Index for November PMI registered at 57.2, down slightly from 57.7 in October.
ON BAYSTREET
The TSX Venture Exchange reversed course and gained 10.22 points, or 1.1%, to 949.66.
All 12 TSX subgroups gained ground, consumer discretionaries leading the pack, up 1.6%, energy jumping 1.5%, and financials, spiking 1.4%.
ON WALLSTREET
U.S. stocks rose on Wednesday morning as companies that benefit from the economic reopening gained along with big energy.
The Dow Jones Industrials spiked 398.44 points, or 1.2%, to begin trading Wednesday at 34,882.16
The S&P 500 index jumped 67.78 points, or 1.5%, to 4,634.78.
The NASDAQ vaulted 205.31 points, or 1.3%, to 15,743.
The gains follow a Tuesday selloff on Wall Street over fears about the new omicron COVID variant and the Federal Reserve mulling a quicker-than-planned exit from its easy monetary policy.
Energy shares posted sharp gains, with Occidental Petroleum and Baker Hughes each rising more than 3% as West Texas Intermediate prices climbed about 4% to nearly $69 a barrel.
Retail and apparel stocks were strong in early trading, with Gap and Ralph Lauren adding more than 3% and PVH gaining nearly 4%. Cruise stocks Carnival and Norwegian also rose about 3%.
Stocks wrapped up a volatile month of trading on Tuesday. The Dow lost 3.7% for its second month of losses in three. The S&P 500 fell 0.8%, while the NASDAQ gained 0.25% in November.
Still, the major averages are up solidly for the year. The Dow is up 12.7% and the S&P 500 is up 21.6% in 2021. The NASDAQ is up an impressive 20.6% this year.
ADP’s private payroll data for November showed 534,000 jobs added in November, above expectations of 506,000
Elsewhere, November’s IHS Markit manufacturing Purchasing Managers Index came in at 58.3, lower than expected. October construction spending also rose slower than expected, but there was a positive historical revision to help offset the miss.
Prices for 10-year Treasurys sagged, raising yields to 1.48% from Tuesday’s 1.44%. Treasury prices and yields move in opposite directions.
Oil prices increased $2.30 to $68.48 U.S. a barrel.
Gold prices hiked $9.80 to $1,785.30 U.S. an ounce.
