Canada's main stock index rose on Wednesday, driven by strong results from Royal Bank of Canada, which helped lift shares of financial sector.
The S&P/TSX Composite Index shot up 95.12 points to pause for lunch on a busy Wednesday at 15,039.21
The Canadian dollar drooped 0.17 cents at 75.04 U.S.
Couche-Tard stock rose $2.07, or 3.2%, to $67.82. The world's second-biggest convenience store operator beat analysts' earnings expectation as it earned more from improved fuel sales.
The financials sector was helped by a gain of $2.28, or 2.4%, in shares of Royal Bank of Canada, to $97.77. Canada's biggest lender topped quarterly earnings expectations, helped by growth in its retail banking and wealth management divisions.
Top percentage gainers on the TSX were Trican Well Service Ltd, which jumped seven cents, or 5.7%, to $1.31, followed by a rise of 82 cents, or 8%, in shares of Aphria Inc., to $11.11.
First Majestic Silver Corp recovered from earlier losses to gain 19 cents, or 3%, to $6.54.
Meantime, a Reuters poll showed investors see value in Toronto's commodity-linked stock market and expect it to rebound in 2019 as the global economy continues to grow on hopes of a recovery in Canadian heavy crude price.
ON BAYSTREET
The TSX Venture Exchange remained afloat 2.31 points to 588.20
All but two 12 subgroups remained positive midday, with health-care issues haler by 3.9%, consumer staples up 1.4%, and financials richer by 1.1%.
The two laggards were energy, stumbling 0.4%, and communications, inching back 0.1%.
ON WALLSTREET
Stocks stateside ripped higher on Wednesday after Federal Reserve Chairman Jerome Powell said interest rates are close to neutral, a change in tone from remarks the central bank chief made two months go.
The Dow Jones Industrial Average leaped 449.8 points, or 1.8%, to 25,198.53
The S&P 500 gained 38.14 points, or 1.4%, to 2,720.31, as traders took the comments to mean fewer rate hikes were coming in 2019 that could derail the bull market.
The NASDAQ pumped higher 117.97 points, or 1.7%, to 7,200.67
Boeing shares rose 4% as trade worries eased. They also rose after Indonesia investigators said they are looking at a possible maintenance issue that could have led to the Lion Air crash last month.
Salesforce shares rose more than 6% after the company reported better-than-expected earnings. Other cloud-related companies like ServiceNow and Adobe also traded higher.
In a speech at the Economic Club of New York, Powell said the current interest rate level is "just below" neutral. "Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth."
Easing worries on U.S.-China trade also boosted stocks on Wednesday. A New York Times report said Trump was worried about the impact of a long trade war with China on markets and the economy. This could lead Trump to seek a compromise with China on trade, the Times said, citing U.S. officials.
Prices for the benchmark for the 10-year U.S. Treasury were higher, thus lowering yields to 3.05% from Tuesday’s 3.07%. Treasury prices and yields move in opposite directions.
Oil prices recovered 37 cents to $51.93 U.S. a barrel.
Gold prices recouped $11.70 at $1,215.10 U.S. an ounce.
