Canada's main stock index hit a two-week high on Wednesday after the Bank of Canada cut its benchmark rate in a surprise move to minimize the impact of lower oil prices on economic growth, sending most major sectors, including the energy group, higher.
The S&P/TSX composite index gained 313.70 points, or 2.2%, to approach noon at 14,622.14
The Canadian dollar plummeted 1.74 cents to 80.80 cents U.S., after hitting a six-year low against the greenback on Tuesday.
The central bank's cut to 0.75% from 1% came after the longest period of unchanged rates since 1950. The move was directed partly at preventing financial instability that could result from a vulnerable housing market.
The Canadian market cheered the news, and energy shares rallied. Financials, under pressure in part due to concerns about weakness in the oil and gas industry, also advanced.
Within the energy sector, Suncor Energy jumped 5% to $36.69, and Canadian Natural Resources gained 5.6% to $36.10.
Royal Bank of Canada added 1.5% to $76.56, and Bank of Montreal was up 1.1% at $76.48.
On the economic docket, Statistics Canada reported this morning that wholesale trade ditched 0.3% in November, to $54 billion, following two consecutive monthly gains.
Decreases in three of seven sub-sectors -- machinery, equipment and supplies -- were partially offset by higher sales in the motor vehicle and parts sub-sector.
ON BAYSTREET
The TSX Venture Exchange regained 4.66 points to 676.23.
All but one of the 14 Toronto subgroups were higher midday, with metals and mining strengthening 5.3%, energy hiking 4.6%, and global base metals up 4.5%.
Only telecoms missed out, losing 0.6%.
ON WALLSTREET
U.S. stocks shifted to gains on Wednesday, extending a two-day run higher, as investors embraced reports that the European Central Bank would implement a large-scale bond-purchasing program.
The Dow Jones Industrials regained 42.03 points to 17,557.26
The S&P 500 gained 12.55 points to 2,035.10, with energy pacing gains that included all 10 of its major industry groups.
The NASDAQ index marched upward 28.34 points to 4,683.19
UnitedHealth Group rose after posting a better-than-expected fourth-quarter profit. International Business Machines fell after the Dow component offered a tepid outlook.
Netflix gained after the supplier of streaming videos reported earnings that beat estimates.
Ahead of Wednesday's open, stock futures maintained losses after data showing U.S. housing starts climbed more than expected in December in a hopeful sign for the sluggish housing-market recovery.
Multiple news outlets quoted sources in reporting the ECB's executive board had proposed monthly bond purchases of roughly 50 billion euros in a quantitative easing program that would last at least a year.
Prices for 10-year U.S. Treasuries sagged, lifting yields to 1.85% from Tuesday’s 1.81%. Treasury prices and yields move in opposite directions.
Oil prices moved higher $1.27 per barrel to $47.74 U.S.
Gold prices shone brighter by $4.20 an ounce to $1,290.00 U.S.
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