Canada's main stock index opened higher on Wednesday, led by energy and financials, as fears of a Cyprus default were overshadowed by expectations that the U.S. Federal Reserve will sustain its bond-buying stimulus plan and by a jump in BlackBerry shares.
The S&P TSX index turned positive 31.72 points to begin Wednesday at 12,805.59
The Canadian dollar recaptured 0.10 cents to 97.42 cents U.S.
Alamos Gold Inc dropped its offer to buy Aurizon Mines Ltd, putting an end to its bidding war with Hecla Mining Co. Shares in Aurizon dipped two cents to $4.46, while Alamos shares galloped 31 cents, or 2.1%, to $15.29
Shares in BlackBerry, the company formerly known as Research In Motion, hiked 80 cents, or 5.2%, to $16.22
Chinese gold miner Zijin Mining Group said it had agreed to set up an offshore investment fund with Sprott Inc. with a target size of $500 million. Sprott shares surrendered two cents to $3.46.
ON BAYSTREET
The TSX Venture Exchange regained 2.72 points to 1,109.23
All but two of the 14 Toronto subgroups gained ground in the first hour of trading, led by information technology, zooming 2%, while health-care stocks were 1.1% haler, and the metals and mining group strengthened 0.6%.
The two laggards were gold, 0.4% less shiny, and materials, fading 0.1%.
ON WALLSTREET
Investors shifted focus away from Cyprus early Wednesday.
The Dow Jones Industrials ballooned 82.13 points to begin Wednesday’s session at 14,538.
The S&P 500 index was 8.84 points higher to 1,557.18. The tech-heavy NASDAQ Composite muscled up 21.05 points to 3,250.15.
In corporate news, FedEx widely missed earnings estimates and cut its outlook for the year. The company is often viewed as a bellwether for the broader economy due to the global scope of its business. FedEx also said it may temporarily ground some aircraft.
Shares of rival UPS also fell.
Shares of Lennar rose 1% after the homebuilder reported better-than-expected earnings.
General Mills reported earnings that missed forecasts and issued lukewarm guidance.
Adobe Systems shares jumped a day after the graphics software maker beat earnings estimates.
Investors will also be monitoring developments out of Cyprus Wednesday after lawmakers voted against a tax on bank deposits, calling a bailout deal into question.
Worries about Cyprus sparked a choppy trading day Tuesday, with U.S. stocks ending mixed. But investors have been increasingly calm about the prospect of financial contagion spreading from the tiny island nation to larger economies in the euro area.
Economically speaking, the U.S. Federal Reserve is not expected to announce any significant changes to its current monetary policies, when it releases its statement at 2 p.m. ET. But investors always pay close attention to chairman Ben Bernanke's remarks for any hints on what the Fed will do next.
Despite stronger economic data, Bernanke is expected to reiterate his view that the economy is weak and needs support.
Prices on the 10-year U.S. Treasury slipped, raising yields to 1.94% from Tuesday’s 1.91%. Treasury prices and yields move in opposite directions.
Oil prices marched 76 cents higher to $92.92 U.S. a barrel.
Gold prices dipped $3.80 to $1,607.50 U.S. an ounce.
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