Stocks in Canada’s largest market rose on Thursday, helped by gains in the financial sector, while energy shares rallied as crude oil prices trimmed losses after hitting a nearly seven-year low below $37 U.S. a barrel.
The Toronto Stock Exchange's S&P/TSX composite index gained 63.94 points to greet noon at 13,001.53
The Canadian dollar slid 0.17 cents to 73.49 cents U.S.
Financials were up, including gains of 1.1% for TD on Bank to $54.36 and 1.6% for Bank of Montreal to $78.65.
Energy stocks rose as well, led by a 2.1% gain for Suncor Energy to $36.12. Pipeline companies also advanced.
Cenovus Energy rose 1% to $18.87. The company said it expected to reduce its capital budget by 19% in 2016 in response to tumbling crude prices.
The materials group rose, led by a 2.3% advance for Potash Corporation of Saskatchewan to $24.92.
Among the biggest drags on the index, Dollarama fell 1.6% to $80.41 after dropping more than 7% on Wednesday after reporting quarterly results.
On the economic slate, Statistics Canada reported that its New Housing Price Index rose 0.3% in October, following a 0.1% increase in September. The gain was largely attributable to higher new home prices in Ontario.
ON BAYSTREET
The TSX Venture Exchange retreated 0.72 points to 504.52.
All but two of the 13 TSX subgroups surged, as information technology rocketed 1.8%, gold brightened 1.3%, and the metals and mining sector moved up 1.2%.
The two laggards were industrials, down 0.8%, and telecoms, off 0.2%.
ON WALLSTREET
U.S. stocks traded mostly higher Thursday as investors continued to eye oil prices and awaited a possible rate hike from the Federal Reserve next week.
The Dow Jones industrial average rallied 41.49 points to 17,533.79, with Chevron powering gains the most.
The S&P 500 gained 6.34 points to 2,053.96. Energy held about 1.4% higher in midday trade after briefly rising rose more than 2% to lead S&P 500 advancers.
The NASDAQ index remained positive 12.68 points to 5,035.54,
Chevron said it plans to cut its budget by 24% next year as oil prices are expected to remain low. Media reports note the dramatic cutback in spending is likely to be echoed by other oil majors who will soon release spending plans, with rival ConocoPhillips set to release its 2016 budget on Thursday.
Glencore’s CEO said the company aims to cut net debt by almost $3 billion to $13 billion U.S. by the end of next year. The firm also plans to cut capital spending to $3.8 billion in 2016, down from $5 billion U.S.
Moody's Investors Service downgraded all ratings for Petrobras to Ba3 from Ba2 and placed them on review for possible further downgrade. Moody's also put Brazil's Baa3 rating on review for downgrade.
Investors also digested two economic data sets Thursday morning, with initial jobless claims rising to 282,000. Economists polled by Reuters expected the number to come in at 269,000.
Meanwhile, import prices fell 0.4% in November, as oil prices weighed, the U.S. Labor Department said. Other data due Thursday includes the Treasury budget at 2 p.m. EST.
Prices for the 10-year Treasury stayed put, maintaining yields at Wednesday’s 2.22%.
Oil prices gave back 27 cents a barrel to $36.89 U.S.
Gold prices surged 87 cents to $1,073.65 U.S. an ounce.
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