North American markets moved solidly higher on Tuesday, ahead of the Fed meeting that will set interest rate policy.
The S&P/TSX composite index jumped 109.37 points to close Tuesday at 13,462, after four straight days of losses.
The Canadian dollar inched up 0.06 cents at 75.46 cents U.S.
In focus on Tuesday were oil prices, which increased ahead of the release at 4:30 p.m. ET of the crude inventory report from the American Petroleum Institute. The report is expected to show a drop in stockpile after weeks of growth.
In the energy sector, Lightstream Resources zoomed three cents, or 7.9%, to 41 cents, while Penn West Petroleum hiked five cents, or 7.6%, to 71 cents.
The leading sector, however, proved utilities, as Fortis Inc. gained $1.25, or 3.6%, to $36.29, and Canadian Utilities improved $1.19, or 3.5%, to $35.53.
Industrials were next best, as Transcontinental Inc. popped 85 cents, or 4.7%, to $18.91. As it has been for much of the last week, Bombardier was the most actively traded stock gaining a penny to $1.67, on 7.7 million shares.
Open Text was the strongest of the third-best group, information technology, climbing $1.64, or 2.8%, to $61.37, while Constellation Software hiked $15.09, or 2.7%, to $579.59.
On the economic slate, the Canadian Real Estate Association reported national home sales activity edged up by 0.3% from July to August. Actual (not seasonally-adjusted) activity stood 4.0% above August 2014 levels. CREA also said the number of newly listed homes rose 0.5% from July to August.
ON BAYSTREET
The TSX Venture Exchange gained 4.33 points to 548.43
All but one of the 14 TSX subgroups closed the session higher, as utilities gained 2.8%, industrials progressed 1.7%, and information technology moved up 1.3%.
The lone negative group was gold, down 0.5%.
ON WALLSTREET
U.S. stocks closed more than 1% higher Tuesday as investors eyed some of the final data reports leading into the Federal Reserve's key meeting.
The Dow Jones industrial average flew 228.89 points, or 1.4%, to 16,599.85, with Caterpillar leading advancers and Walt Disney the only decliner.
The S&P 500 hiked 25.06 points, or 1.3%, to 1,978.09, with industrials leading all 10 sectors higher.
The NASDAQ index recovered 54.76 points, or 1.1%, to 4,860.52
August retail sales showed an increase of 0.2%, missing expectations of a 0.3% gain. Ex-autos, retail sales increased 0.1%. July retail sales were revised up to 0.7% from 0.6%.
In other economic news, July business inventories gained 0.1%. August industrial production data showed a decline of 0.4%, worse than the expected 0.2% drop.
September U.S. Empire Manufacturing showed negative 14.7, versus August's read of negative 14.9.
While today's economic reports could give markets some direction, major market moves were not expected ahead of the Fed meeting.
The Federal Open Market Committee could raise short-term interest rates for the first time in more than nine years at its two-day meeting, which begins Wednesday and culminates in a statement release and press conference Thursday.
Many economists see enough support from labour market conditions for the Fed to hike in September, while financial markets price in a small chance of a move.
Prices for 10-year U.S. Treasuries fell sharply, raising yields to 2.28% from Monday’s 2.18%. Treasury prices and yields move in opposite directions.
Oil prices took on 66 cents a barrel to $44.66 U.S.
Gold prices retreated $3.60 to $1,104.10 U.S. an ounce.
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