The Toronto stock market racked up modest gains Wednesday, supported by gold stocks as investors looking for a safe haven pushed bullion to a six-month high.
The S&P/TSX composite index was positive 51.77 points to end Wednesday at 14,319.
The Canadian dollar shed 0.11 cents at 89.94 cents U.S.
The TSX base metals sector was down as the May copper contract on the New York Mercantile Exchange shed early losses and climbed a penny to $2.96 U.S. a pound with some analysts thinking the reaction to the China news has been overdone.
Even so, Teck Resources took on 28 cents to $23.25.
The energy sector shed some of its strength as demand concerns have steadily pushed prices lower this week. Imperial Oil advanced 32 cents to $51.06, and Suncor gained 28 cents to $36.70
TSX losses were limited by a hefty jump in the gold sector as worries about China, along with Ukraine tensions, pushed bullion prices higher. Barrick Gold shot 63 cents higher to $22.62, while Goldcorp grew $1.19, or 4%, to $30.95
The industrials component also provided lift to the TSX, as Bombardier shares strengthened eight cents to $3.78.
ON BAYSTREET
The TSX Venture Exchange eked up 3.08 points to 1,046.39
Nine of the 14 Toronto subgroups were higher, with gold powering 3% higher, materials climbing 1.7%, and industrials up 1.4%.
The four laggards were weighed by telecoms, down 1%, metals and mining, off 0.5%, and energy stocks, down 0.2%. Information technology stocks were flat by the closing bell.
ON WALLSTREET
The Dow Jones industrial average and the S&P 500 both ended little changed. The NASDAQ posted a modest gain.
The recovery comes despite significant losses in Europe and Asia, where many indexes fell more than 1%.
The Dow Jones Industrial Average settled 11.17 points to 16,340.08
The S&P 500 index inched up 0.57 points to 1,868.20. The NASDAQ gained 16.14 points to 4,323.33.
In corporate news, Herbalife shares plunged 7% after the nutritional supplements company said it is being investigated by the U.S. Federal Trade Commission.
The news comes one day after hedge fund manager Bill Ackman, who has repeatedly called Herbalife a pyramid scheme, launched an attack on the company's business practices in China. Ackman, who has a $1-billion bet that Herbalife stock will fall, has been calling for regulators to investigate the company for more than a year.
Herbalife said it welcomed the investigation and plans to cooperate. The company is confident that it is in compliance with all regulations and hopes the investigation will clear up what it calls a lot of “misinformation”.
Meanwhile, shares of another "multi-level" marketing company, NU Skin, moved higher after an initial pullback on the Herbalife news.
Federal prosecutors are reportedly investigating General Motors over its handling of ignition switch problems that have been linked to 13 deaths. The stock was little changed Wednesday morning after plunging 5% Tuesday.
Tesla shares bounced back after tumbling Tuesday on news that New Jersey will force the electric car maker to sell through franchise dealerships, rather than direct to consumers.
Plug Power rebounded after plummeting Tuesday. Rival fuel cell stocks Ballard Power Systems and FuelCell Energy were also higher in a volatile day of trading. The companies are considered highly speculative and have enjoyed a massive run as of late.
Prices for 10-year U.S. Treasuries were higher, reducing yields to 2.73% from Tuesday’s 2.77%. Treasury prices and yields move in opposite directions.
Oil prices plunged $1.93 to $98.10 U.S. a barrel.
Gold prices spiked $19.90 to $1,366.60 U.S. an ounce.
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