The Toronto stock market was higher Tuesday as traders hope a two day meeting of the U.S. Federal Reserve will yield some guidance on the future of the central bank's stimulus measures.
The S&P/TSX Composite Index gained 72.36 points, to greet noon at 12,361.26
The Canadian dollar docked 0.20 cents to 97.97 cents U.S.
The energy sector was ahead amid news that Ottawa is proposing new legislation that would see the liability cap for companies operating in Atlantic Canada's offshore rise to $1 billion from the current $30 million.
Natural Resources Minister Joe Oliver also announced that liability in the Arctic will increase to $1 billion from $40 million. Oliver says the move is aimed at aligning Canada's accountability regime with current international standards in the event of an oil spill.
Husky Energy rose 41 cents to $28.58 while Imperial Oil was ahead 44 cents to $40.61.
The consumer discretion sector climbed and Tim Hortons rose $1.68 to $55.56.
The telecom sector was up with Telus Corp. ahead 41 cents to $35.34.
The industrials sector also provided lift as transport giant Bombardier Inc. announced that it has received an order worth up to $1.035 billion U.S. from VistaJet, which operates a fleet of private business aircraft.
VistaJet placed firm orders for 20 Challenger 350s and acquired options for 20 more of Bombardier's long-range business jets during the second day of the Paris Air Show, a major event for the aviation industry. Its shares climbed four cents to $4.74.
The financial sector climbed and Manulife Financial improved by 16 cents to $16.19.
The metals and mines sector was flat while July copper fell five cents to $3.14 U.S. a pound.
The gold sector declined, as Barrick Gold Corp. faded 27 cents to C$19.48.
In other corporate news, Hudson's Bay Company has appointed a new vice-chairman and president.
The national retailer says its current president, Bonnie Brooks, has been named to the position of vice-chairman and Liz Rodbell, its executive vice-president and chief merchant has been promoted to president. Its shares were off 50 cents to $16.25.
ON BAYSTREET
The TSX Venture Exchange docked 4.9 points to 920.14
All but three of the 14 Toronto subgroups were positive by noon, led by consumer discretionaries, up 1.4%, while information technology and energy each climbed 1%
The three losing groups proved to be gold, losing 2.6% of its shine, while metals and mining lost 1.2% and materials sagged 1.1%.
ON WALLSTREET
U.S. stocks rose Tuesday, as investors digested a pair of economic reports and the Federal Reserves began its two-day policy meeting.
The Dow Jones Industrials strengthened 110.10 points to 15,290.
The S&P 500 index gained 9.61 points to 1,648.65. The tech-rich NASDAQ Composite hiked 22.20 points to 3,474.33.
A report on consumer prices showed that inflation remains subdued, while a report on the housing market was mixed.
Sony shares climbed 3% on reports that Dan Loeb's Third Point hedge fund has increased its stake and is upping the pressure on the company to agree a partial spinoff of its entertainment business.
Shares of Hormel fell after the processed meat company lowered its earnings outlook for the year.
Economically speaking, the government's consumer price index for May edged up 0.1%, according to the U.S. Bureau of Labor Statistics. The CPI was expected to have risen by 0.3%. The so-called core CPI, which excludes food and energy prices, rose 0.2%.
Separately, the Census Bureau said the number of new homes breaking ground in May rose 6.8%. The number of building permits filed last month rose 3.1% in the month. The numbers were more or less as expected.
Investors are likely to remain on edge until they hear more from Fed Chairman Ben Bernanke about the central bank's plans for its bond-buying program. Bernanke is set to speak at a news conference Wednesday afternoon.
In a PBS interview that aired late Monday, President Obama told Charlie Rose that Bernanke has "already stayed a lot longer than he wanted, or he was supposed to."
Prices for the 10-year U.S. Treasury sagged, raising yields to 2.19% from Monday’s 2.17%. Treasury prices and yields move in opposite directions.
Oil prices jumped five cents to $97.82 U.S. a barrel.
Gold prices fell $19 to $1,364.10 U.S. an ounce
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