Canada's main stock index jumped shortly after Wednesday’s open, as investors digested the Bank of Canada's interest rate decision and as global investors bet on more economic stimulus from China.
The S&P/TSX composite index was positive 119.89 points to open Wednesday at 13,750.56
The Canadian dollar slid 0.17 cents to 75.53 cents U.S.
Bombardier has turned down a Chinese offer to buy up to 100% of its prized rail unit, documents seen by Reuters show, underscoring its reluctance to cede control of the unit to a state-owned Chinese buyer at this juncture.
Beijing Infrastructure Investment Co, a government-owned company that operates 18 metro lines in China's capital, had offered to acquire between 60% and 100%of Bombardier Transport, an Aug. 14 letter reviewed by Reuters outlining BII's offer showed.
Bombardier gained a dime to $1.29.
Goldcorp Inc on Tuesday cut its 2015 production forecast for its newest mine, the Eleonore gold mine in Quebec, because higher-than-expected "folding" in the underground rock has resulted in lower gold grades.
Goldcorp said it now expected Eleonore to produce between 250,000 and 270,000 ounces of gold this year. It previously said Eleonore was expected to produce "at or below 290,000 and 330,000 ounces of gold".
Goldcorp shares dipped 40 cents, or 2.3%, to $17.13.
Manulife Financial Corp is nearing a deal to buy British bank Standard Chartered's Hong Kong pension business for about $400 million in an attempt to narrow the gap with its leading rival.
The insurer’s shares popped 46 cents, or 2.3%, to $20.87.
Barclays raised the target price on North West Company to $26.00 from $25.00, saying the stock have experienced the strongest rally among Canadian Consumer Staples stocks over the last three months.
North West shares slumped 22 cents to $26.77.
Canaccord Genuity initiated coverage on Pure Technologies with a buy rating and $8.00 target price, consider the company an excellent vehicle for investors desiring exposure to a $6-billion infrastructure renewal market.
Pure shares advanced six cents, or nearly 1%, to $6.25.
On the economic front, the Bank of Canada announced this morning, as expected, it is keeping its target for the overnight rate at 0.5%. The Bank Rate is correspondingly 0.75% and the deposit rate is 0.25%
Moreover, Statistics Canada reported that building permits issued by municipalities edged down 0.6% to $7.7 billion in July, following a 15.5% increase in June.
Lower construction intentions in the non-residential sector, mainly in Ontario and Alberta, accounted for much of the decrease at the national level.
A report from Canada Mortgage and Housing Corporation revealed that housing starts showed the seasonally adjusted annualized rate of housing starts jumped to 216,924 in August from an upwardly revised 193,253 units in July. Forecasters had expected 190,000 starts.
ON BAYSTREET
The TSX Venture Exchange nicked up 0.89 points at Wednesday’s open to 557.51
All but three of the 14 TSX subgroups were positive in the first hour, led by metals and mining, chugging ahead 3%, global base metals, better by 2%, and consumer discretionaries, improving 1%.
The three laggards were gold, off 1.3%, materials, slumping 0.2%, and telecoms, sliding 0.1%.
ON WALLSTREET
U.S. stocks traded higher for a second consecutive day Wednesday, following a rally in global markets amid talk of stimulus overseas.
The Dow Jones industrial average moved forward 51.82 points to 16,544.50, with Goldman Sachs the greatest point driver. The blue chip index joined the S&P 500 and NASDAQ out of correction territory, less than 10% away from their 52-week highs.
The S&P 500 added 9.69 points to 1,979.10
The NASDAQ index took on 21.61 points to 4,833.54. Apple reversed initial gains to trade mildly lower ahead of its afternoon event, at which the company is expected to unveil new products.
On the earnings front, Krispy Kreme and Quiksilver are expected to report earnings after the close.
Economically speaking, traders eyed the Job Openings and Labor Turnover Survey (JOLTS) which showed the number of job openings was 5.8 million, the U.S. Bureau of Labor Statistics said.
The key non-farm payrolls report Friday reinforced expectations that labor conditions are strong enough to support a rate hike, which could possibly come as soon as the Federal Reserve's meeting next week.
China's Ministry of Finance said the government will strengthen fiscal policy, boost infrastructure spending and speed up reform of its tax system, adding to other steps to re-energize sputtering growth.
Japanese stocks also rallied on back of comments by Prime MinisterShinzo Abe that the government aims to lower the corporate tax rate.
On Wednesday, Japan's Nikkei index jumped 7.7% for its biggest one-day gain since 2008 and China's Shanghai Composite index closed up 2.3%.
Prices for 10-year U.S. Treasuries tumbled, upping yields to 2.24% from Tuesday’s 2.19%. Treasury prices and yields move in opposite directions.
Oil prices dropped 46 cents a barrel to $45.48 U.S.
Gold prices let go of $9.70 to $1,111.30 U.S. an ounce.
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