Equities in Canada’s biggest market regained some ground on Thursday after Wednesday's bruising retreat, but it was off session highs as energy and mining stocks gave up early gains, undermining stronger financial stocks.
Toronto’s S&P/TSX composite index added 39 points to wind into noon at 14,451.07
The Canadian dollar moved forward 0.13 cents at 78.59 cents U.S.
Helping to keep the Toronto stock market's benchmark index in positive territory were Royal Bank of Canada, which rose 0.9% to $76.31, and Manulife Financial, which advanced 0.9% to $22.90.
The overall financials group climbed.
The most dramatic decliner on the index was Pacific Rubiales Energy Co, which plunged 39.1% to $3.20 after Mexican industrial conglomerate Alfa SAB de CV and energy investment firm Harbour Energy Ltd dropped their plans to buy the Canadian oil and gas company.
Pacific Rubiales' shares have tumbled 75% over the past year on sinking crude prices and a heavy debt load.
On the economic beat, Statistics Canada reported this morning that The New Housing Price Index rose 0.2% in May, following a 0.1% increase in April.
Moreover, Canada Mortgage and Housing Corporation reported the seasonally-adjusted annualized rate of housing starts rose to 202,818 units in June from a downwardly revised 196,981 units in May. Forecasters had expected 190,000 starts.
ON BAYSTREET
The TSX Venture Exchange gained 2.45 points to 640.14.
The 14 TSX subgroups were evenly divided between gainers and losers. Global base metals ballooned 2.3%, while their cousins in metals and mining advanced 2.2%, and consumer staples marched 0.8%
The seven laggards were weighed most by industrials, down 0.4%, utilities, inching back 0.3%, and real-estate, lower by 0.2%.
ON WALLSTREET
U.S. stocks rebounded on Thursday from a recent decline as a jump in Chinese stocks overnight boosted investor sentiment.
The Dow Jones industrial average was off session highs, but still ahead, 149.05 points to 17,664.47, with Microsoft leading nearly all blue-chips higher and Intel the only decliner.
The S&P 500 picked up 18.12 points to 2,064.80, with financials leading eight sectors higher and utilities and telecommunications the only decliners.
The NASDAQ index gained 51.92 points to 4,961.68
Earnings are also in focus, with PepsiCo and Walgreens Boots Alliance posting results before the bell.
Pepsico reported adjusted quarterly profit of $1.32 U.S. per share, eight cents above estimates, with revenue also beating forecasts.
The firm's profit margins expanded during the quarter, and it raised its full-year forecast although it adds that currency will have a negative impact of 11 percentage points on full-year profit.
Walgreens Boots Alliance earned an adjusted $1.02 U.S. per share for its latest quarter, 15 cents above estimates, though revenue was shy of forecasts. The drug store operator also raised its full-year earnings forecast, and increased its quarterly dividend by 6.7% to 36 cents U.S. per share.
On the economic front, weekly U.S. jobless claims gained slightly to 297,000, the highest level since February.
The Shanghai Composite shot 5.8% higher on Thursday for its best day in six years after China instituted new supportive measures, including restrictions on short selling and loosening of margin lending regulations.
Prices for 10-year U.S. Treasuries faded, raising yields to 2.27% from Wednesday’s 2.20%. Treasury prices and yields move in opposite directions.
Oil prices recovered $1.24 a barrel to $52.89 U.S.
Gold prices sifted off a dollar at $1,162.50 U.S. an ounce.
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