Equity markets in Toronto jumped to their highest in more than two months on Tuesday as energy shares rose as oil prices extended a rally on hopes that oil production might come down.
The S&P/TSX composite index gained 157.78 points, or 1.1%, to greet noon at 15,058.25
The Canadian dollar gained 0.63 cents to 80.20 cents U.S.
Banks and other financial stocks gained, as Bank of Montreal climbed 2.7% to $76.16, and Toronto-Dominion Bank was up 2.2% at $52.46.
In the energy sector, which hiked substantially, Canadian Natural Resources added 2.7% to $39.96 and Penn West Petroleum jumped 18.5% to $2.54.
Canadian Oil Sands Ltd rose 17.7% to $11.12, adding to gains of 20.4% and 20.6% in the previous two sessions, respectively. Investors have been cheering aggressive moves made by the company in response to the drop in oil prices.
On the economic slate, Statistics Canada reported that its Industrial Product Price Index decreased 1.6% in December, mostly due to lower prices for energy and petroleum products.
The Raw Materials Price Index declined 7.6% in December, mainly because of lower prices for crude energy products.
ON BAYSTREET
The TSX Venture Exchange added 6.06 points to 691.31
Eight of the 14 Toronto subgroups were up by noon hour, led by metals and mining, up 4.7%, global base metals, ahead 3.4%, and energy, gaining 3.2%.
The half-dozen laggards were weighed mostly by gold, down 3.2%, health-care, off 1.6%, and materials, off 1.3%.
ON WALLSTREET
U.S. stocks traded mostly higher on Tuesday on continued momentum from strengthening oil prices and encouraging developments in the euro-zone.
The Dow Jones Industrials moved higher 153.81 points to 17,514.85, as Caterpillar rose more than 3% before coming off highs. Exxon Mobil and Chevron followed, each rising by as much as more than 2%.
The S&P 500 gained 11.82 points to 2,032.67. The energy sector pared gains but traded more than 1.5% higher to lead advancers on the S&P 500, on track for four straight days of gains.
The NASDAQ index added 7.01 points to 4,683.70, with tech giants Apple, Google and Facebook all in the red.
Reporting before the bell, UPS matched estimates with adjusted quarterly profit of $1.25 U.S. per share, while revenues were above forecasts. However, the company said its results were below its own expectations, and it also forecast full-year results below Street forecasts.
It plans to address these issues with cost and revenue actions, although UPS adds that customers were "delighted" with its service during the holiday season.
BP posted better-than-expected replacement cost profit of $2.2 billion U.S. for the fourth quarter, despite taking a $3.6-billion U.S. impairment cost. In a television interview, CEO Bob Dudley warned that oil prices could remain as low as $50 U.S. per barrel "for some time."
Factory orders for December posted a greater-than-expected decline of 3.4%. Analysts expected a decline for the month, especially with Monday's weaker ISM manufacturing numbers.
Auto sales come out throughout the day, and analysts are encouraged by the initial reports.
Greece's Finance Minister Yanis Varoufakis unveiled proposals on Monday to end the confrontation with its creditors by swapping outstanding debt for new growth-linked bonds, the Financial Times reported. On Tuesday, Greek Finance Minister Yanis Varoufakis meets with his Italian counterpart in Rome.
Prices for 10-year U.S. Treasuries sagged, boosting yields to 1.74% from Monday’s 1.67%. Treasury prices and yields move in opposite directions.
Oil prices jumped $1.32 per barrel to $50.89 U.S.
Gold prices faded $16.90 an ounce to $1,260 U.S.
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