Canada's main stock index scaled an all-time peak on Wednesday after the central bank maintained its key overnight interest rate but opened the door to a possible cut should a slowdown in Canadian growth drag on.
The TSX Composite Index opened higher 45.78 points to 17,618.06
The Canadian dollar dumped 0.27 cents to 76.21 cents U.S.
Shares in French train manufacturer maker Alstom jumped, hitting their highest in almost two years, after a report of a potential approach by Bombardier to combine the firm's rail business.
Bombardier got lift of 13 cents, or 9.7%, to $1.42.
National Bank of Canada raised the target price on Ero Copper to $21.50 from $21.00. Ero shares ducked 11 cents to $19.13.
National Bank of Canada ups the rating on First Quantum Minerals to outperform from sector perform. First Quantum
CIBC cut the rating on Spin Master to neutral from outperform. Spin Master lost $2.56, or 7.2%, to $32.90.
On the economic slate, Statistics Canada’s new housing price index for December rose 0.2% in December, the largest monthly increase for the month of December since 2009.
The Consumer Price Index (CPI) rose 2.2% on a year-over-year basis in December, matching the increase in November. On a seasonally-adjusted monthly basis, the CPI rose 0.4% in December.
The agency also reported wholesale trade declined 1.2% to $63.2 billion in November, the third decline in five months.
The Bank of Canada did as expected, maintaining its target for the overnight rate at 1.75% The Bank Rate is correspondingly 2% and the deposit rate is 1.5%
ON BAYSTREET
The TSX Venture Exchange reacquired 1.26 points to 583.72
All but three of the 12 TSX subgroups were higher in the early going, with communications rocketing 1.3%, information technology ahead 1%, and materials up 0.5%.
The three laggards were energy, down 0.8%, gold settling 0.3%, and materials off 0.2%.
ON WALLSTREET
Stocks rose on Wednesday, rebounding from the previous session’s losses after the release of strong quarterly numbers from IBM.
The Dow Jones Industrials sprang back up again 112.14 points to 29,308.18
The S&P 500 regaining 14.02 points at 3,334.81
The NASDAQ popped 54.84 points to 9,425.45. Both the S&P 500 and NASDAQ reached record highs.
IBM shares climbed more than 4% on the back of quarterly numbers that beat analyst expectations. The company also issued 2020 earnings guidance that topped estimates.
These results put IBM “on its front foot for 2020,” Nomura Instinet analyst Jeffrey Kvaal said in a note. “IBM is quickly pivoting its existing businesses toward the hybrid cloud.”
So far, more than 10% of S&P 500 companies have posted their latest quarterly results. Of those companies, 75% have posted better-than-forecast earnings.
Tesla shares, meanwhile, rose 3.7% as the electric car maker’s market cap broke above $100 billion for the first time. Semiconductor stocks also hit an all-time high. Nvidia and Qorvo advanced more than 1% each.
Stocks pulled back slightly on Tuesday as worries over the spreading of the deadly coronavirus dampened investor sentiment. Those fears eased Wednesday after China unveiled measures to rein in the virus.
Airline and casino stocks rebounded Wednesday after falling sharply in the previous session. American gained 1.7%, and United Airlines were took on 0.9%. Las Vegas Sands, meanwhile, advanced 0.2%.
Overall, stocks are off to a strong start for the year. Through 13 sessions, the S&P 500 has closed lower just five times and is up 2.8%.
Prices for the 10-Year U.S. Treasury gained a mite, lowering yields to 1.76% from Tuesday’s 1.77%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.35 to $57.03 U.S. a barrel.
Gold prices dipped $2.30 to $1,555.60 U.S. an ounce.
