Equities in Canada’s largest market rose sharply after opening at a near one-month high on Wednesday, helped by gains in energy and material companies, and after the Bank of Canada issued an optimistic economic growth outlook.
The S&P/TSX Composite Index rocketed 204.88 points, or 1.3%, to greet noon at 15,555.18
The Canadian dollar lurched lower 0.51 cents to 79.14 cents U.S.
The energy sector rose, as prices of oil, rallied on rising supply concerns. Pipeline company Enbridge Inc and oil and gas producer Canadian Natural Resources each ticked at least 1.8% higher and boosted the energy sector.
Among industrials, SNC-Lavalin was up 90 cents, or 1.6%, to $56.25 after saying it had signed a deal with Saudi Aramco IPO-ARMO.SE to install added facilities at a major plant in Saudi Arabia.
Canadian Pacific Railway was notified by labor union Teamsters Canada that the railroad's workers will go on strike on April 21 after the two parties failed to resolve a deadlock in talks. CP shares gained $1.87 to $227.41.
The largest percentage gainer on the TSX was First Quantum Minerals, which rose $1.17, or 6.7%, to $18.60, while the largest decliner was Labrador Iron Ore, down $1.17, or 5.1%, to $21.90.
On the economic front, the central bank maintained its target for the overnight rate at 1.25% The Bank Rate is correspondingly 1.5% and the deposit rate is 1%.
ON BAYSTREET
The TSX Venture Exchange reacquired 4.2 points to 801.75
All 12 TSX subgroups gained ground, as energy popped 3.2%, materials solidified 2.4%, and gold shone 2% brighter.
ON WALLSTREET
Stocks rose slightly on Wednesday as some of the biggest U.S. companies reported strong quarterly results, lifting investor sentiment.
The Dow Jones Industrial Average inched up 6.05 points to 24,792.68, with Home Depot as the best-performing stock in the index.
The S&P 500 gained 8.33 points to 2,714.42, as a sharp rise in crude prices lifted energy stocks
The NASDAQ Composite index increased 31.11 points to 7,312.21
Morgan Stanley reported a record profit and revenue for the first quarter, as its trading business did better than expected. Shares of the investment bank climbed more than 1%.
Rail transportation company CSX posted quarterly results that easily beat Wall Street estimates, boosted by a series of cost-cutting measures. CSX shares rose 6.1% and were on track for their biggest gain since Jan. 17, when it gained more than 20%.
United Airlines also posted better-than-expected results for the first quarter, sending its stock higher by more than 6%.
The corporate earnings season has gotten off to a strong start. According to Thomson Reuters I/B/E/S, 74% of the S&P 500 companies that had reported through Tuesday surpassed earnings expectations. Meanwhile, 79 percent of those companies topped sales estimates.
IBM reported Tuesday earnings and revenue that topped analyst expectations, but investors were left disappointed with the company's forward-looking guidance. Shares of IBM were on track for their worst day since Oct. 24, 2014, when they fell 7.1%.
On the economic data front, the Federal Reserve's Beige Book is due out at 2 p.m. ET. Investors will be scouring the documents to see if there are any additional clues on how the U.S. economy is currently performing.
Prices for the benchmark 10-year Treasury note paled, raising yields to 2.85% from Tuesday’s 2.82%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.32 a barrel to $67.84 U.S.
Gold prices picked up $4.40 to $1,353.90 U.S. an ounce.
