Big Gains for TSX to End Tuesday

Resources, Financial in Limelight

Equities in Toronto towered Tuesday above the close 24 hours before, driven by precious metal miners and financial companies, ahead of the U.S. Federal Reserve's two-day monetary policy meeting.

The S&P/TSX Composite Index leaped 149.9 points to end Tuesday at 16,503.35

The Canadian dollar grew 0.16 cents to 74.73 cents U.S.

The largest percentage gainer on the TSX was Canfor Corp., which rose 78 cents, or 7.3%, to $11.41, while Hudbay Minerals climbed 40 cents, or 5.8%, to $7.32.

Financials also scored big, with Onex Corp. rocketing $1.89, or 2.5%, to $76.99, while Manulife Financial leaped 50 cents, or 2.2%, to $23.73.

In communications, Rogers sprinted $1.05, or 1.5%, to $70.28, while BCE acquired 82 cents, or 1.4%, to $60.26.

On the economic front, Statistics Canada reported that manufacturing sales in this country declined 0.6% to $57.8 billion in April, following a 2.6% increase in March

ON BAYSTREET

The TSX Venture Exchange sank 0.15 points to 584.47

All 12 Toronto subgroups stayed positive all throughout the session, as materials improved 1.5%, financials bounced 1.3% higher, and communications vaulted 1.1%.

ON WALLSTREET

Stocks surged on Tuesday as Wall Street increased bets on a U.S.-China trade deal after President Donald Trump said he will be meeting with his Chinese counterpart, Xi Jinping, at the upcoming G-20 summit. Sentiment was also lifted by hope that the Federal Reserve will ease monetary policy later this year.

The Dow Jones Industrial Average surged 353.01 points, or 1.4%, to 26,465.54, as 3M and Boeing outperformed.

The S&P 500 gained 28.08 points, or 1%, at 2,917.75. The S&P 500 also traded within 1% of its all-time intraday high of 2,954.13, which was reached May 1.

The NASDAQ Composite climbed 108.86 points, or 1.4%, to 7,953.88

Boeing leaped 5.4%, while another trade bellwether, Caterpillar shares, rose 2.4%. Deere shares also gained more than 3%. Semiconductor stocks jumped led by 6% gains from Nvidia and Micron Technology.

Stocks also got a boost as investors bet the Federal Reserve will set the stage for more accommodative monetary policy at this week’s meeting.

The Fed’s decision is scheduled to be announced Wednesday at 2 p.m. ET.

Trump said in a tweet he “had a very good telephone conversation ” with Xi. He added: “We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.” The summit will start on June 28.

Prices for the benchmark 10-year U.S. Treasury gained, driving down yields to 2.06% from Monday’s 2.09%. Treasury prices and yields move in opposite directions.

Oil prices hiked $2.13 to $54.06 U.S. a barrel.

Gold prices ballooned $6.90 at $1,349.80 U.S. an ounce.