Stocks in Canada’s biggest centre held on to triple-digit gains Wednesday, as the buying momentum continued in energy and mining stocks.
The S&P/TSX composite index leaped 301.07 points, or 2.2%, to end the day at 13,763.78
The Canadian dollar climbed 0.43 cents at 75.90 cents U.S.
All sectors were in positive country, led by the gold sector, which was in turn led by Torex Gold, ahead 14 cents, or nearly 12%, to $1.27. Yamana Gold was the most actively traded stock, spiking 14 cents, or 7.1%, to $2.11, on 5.1 million shares.
Energy shares were close on their heels, with Lightstream Resources galloping 6.5 cents, or 15.9%, to 47.5 cents, and TORC Oil and Gas up 71 cents, or 12.4% to $6.44.
Base metals stocks were also among the frontrunners, as First Quantum Minerals hiked 44 cents, or 6.2%, to $7.52, and Capstone Mining moving up three cents, or 5.3% to 60 cents.
On matters macroeconomic, Statistics Canada reported this morning that offshore investors reduced their holdings of Canadian securities by $10.1 billion in July, mainly in equity instruments.
At the same time, Canadian holdings of foreign securities edged down as sales of equity securities were almost completely offset by purchases of debt securities.
Moreover, the nation’s number crunchers reported that manufacturing sales rose 1.7% to $52.2 billion in July, on the backs of motor vehicle parts and motor vehicle assembly industries.
ON BAYSTREET
The TSX Venture Exchange gained 4.95 points to 553.92
All 14 TSX subgroups closed higher, as gold brightened 5.2%, energy took on 5.1%, and materials strengthened 3.7%.
ON WALLSTREET
U.S. stocks closed higher Wednesday as investors eyed a jump in oil prices and looked ahead to the Federal Reserve's decision on a rate hike.
The Dow Jones industrial average strengthened 140.1 points to 16,739.95, with General Electric the greatest percentage gainer and Verizon the only decliner.
The S&P 500 gathered 17.09 points to 1,995.18, with energy leading nine sectors higher and telecommunications the only decliner.
The NASDAQ index gained 28.72 points to 4,889.24. Apple closed up 0.1%
On the earnings front, FedEx reported quarterly profit of $2.42 U.S. per share, four cents below estimates, with revenue matching forecasts. CEO Fred Smith said the company is doing well considering weaker than expected global economic conditions. Separately, FedEx will increase rates by 4.9% at its FedEx Express service, effective Jan.4. The stock closed down 2.8%.
Oracle was upgraded to buy from neutral at SunTrust, which cites increasing opportunities for Oracle's cloud-based business as well as valuation. Oracle ended the session 0.7% higher, ahead of its earnings release after the close.
Hewlett-Packard surged 5%. The tech firm said after the close Tuesday that it expected to cut a further 25,000 to 30,000 jobs in its enterprise business.
One of the last data points out ahead of the Fed meeting, August Consumer Price Index, showed a decline of 0.1%, its first drop in seven months. The ex-food and energy figure rose 0.1%.
The September home builder sentiment rose one point to 62, the highest since 2005.
The Federal Open Market Committee could raise short-term interest rates for the first time in nine years at its two-day meeting scheduled to begin Wednesday. All eyes are on Thursday afternoon's expected statement and press conference.
Wall Street is divided over whether the central bank will decide to raise rates. In all, 49% of respondents to a survey a rate said they think a hike will come at the current meeting.
Prices for 10-year U.S. Treasuries were lower, raising yields to 2.30% from Tuesday’s 2.28%. Treasury prices and yields move in opposite directions.
Oil prices took on $2.57 a barrel to $47.16 U.S.
Gold prices were positive $15.80 to $1,118.40 U.S. an ounce.
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