Equity markets in Canada’s biggest centre strengthened on Thursday as solid U.S. economic data boosted sentiment and recent comments from the Federal Reserve signaled that the U.S. central bank was in no hurry to raise interest rates.
The S&P/TSX composite index leaped 151.81 points, or 1.1%, to greet noon at 14,436.81.
The Canadian dollar gained back 0.05 cents to 84.69 cents U.S.
The Toronto equity market rebounded for a second straight session, following sharp selloffs on concerns about a global crude supply glut that took down oil prices.
Financials advanced, with Bank of Nova Scotia rising 0.7% to $64.11 and Toronto Dominion Bank gaining 0.4% to $53.10.
Shares of energy producers climbed, helped by higher U.S. crude oil prices. Canadian Natural Resources Ltd was up 2.7% to $33.06 and Suncor Energy Inc added 2% to $35.97.
In corporate news, Valeant Pharmaceuticals International Inc raised its 2015 guidance for adjusted profit more than expected as the drug maker sees growth from existing products and a stream of small acquisitions. The stock jumped 4.6% to $179.50.
On the economic beat, Statistics Canada reported this morning that its New Housing Price Index rose 0.1% in November. Provincially, gains in Alberta and Ontario were offset by a decline in British Columbia.
ON BAYSTREET
The TSX Venture Exchange gained 6.24 points to 689.89
All but one of 14 Toronto subgroups were higher by noon, with health-care again leading the pack, progressing 3.1%, metals and mining better by 2.9%, and global base metals up 2.2%
Only consumer staples missed the party, and only losing 0.03% at that.
ON WALLSTREET
U.S. stocks surged for a second day on Thursday, with the Dow turning higher for the year, as the price of oil steadied and on thinking the Federal Reserve and the European Central Bank would buttress the global economy.
The Dow Jones Industrials soared 267.96 points, or 1.5%, to 17,852.48, with all 30 of its components advancing.
The S&P 500 added 29.48 points to 2,055.38, with all 10 of its major industry groups rising.
The NASDAQ index jumped 73.95 points to 4,724.42.
Comments late Wednesday by Fed Bank of Chicago President Charles Evans helped the bullish slant, with Evans saying he did not believe the central bank should be in a rush to hike interest rates.
Costco Wholesale climbed in early New York trading after the warehouse retailer reported a better-than-expected increase in same-store sales last month.
Family Dollar Stores fell after the discount retailer reported quarterly earnings short of estimates, and J.C. Penney dropped after the retailer said it would close about 40 stores in the next year.
Data Thursday had jobless claims dropping by 4,000 to 294,000 last week, with the better-than-expected number coming a day before the payrolls report for December.
Prices for 10-year U.S. Treasuries slid, raising yields to 2.02% from Wednesday’s 1.95%. Treasury prices and yields move in opposite directions.
Oil prices slid nine cents per barrel to $48.56 U.S.
Gold prices took on $2.20 an ounce at $1,212.90 U.S.
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