Equities in Canada’s largest centre gained in morning trade on Thursday as energy stocks rebounded from a recent slump even as crude oil prices sat near 12-year lows.
The S&P/TSX composite index advanced 143.2 points, or 1.2%, to greet noon at 11,986.31
The Canadian dollar recouped 0.12 cents to 70.14 cents U.S.
Banks also rose, while miners and railways weighed.
Canadian Pacific Railway Ltd falling 4.4% to $144.52 after it missed profit expectations on lower freight volumes.
Canadian National Railway Co declined 3.3% to $66.79.
Royal Bank of Canada moved up 0.8% to $66.11 after British insurer Aviva said it would buy RBC's general insurance arm for $582 million
Gold miners and fertilizer companies also weighed, with bullion lower on a weaker euro and skittish investors wary of a possible global slowdown.
Barrick Gold Corp declined 3.8% to $11.34 and Goldcorp Inc lost 4.4% to $13.69.
Potash Corp fell 1.7% to $23.17 and Agrium Inc slipped 0.9% to $124.25.
Bombardier fell 3.3% to $1.16 after United Airlines agreed to buy 40 small planes from Boeing Co, a blow for the Canadian plane and train maker, which has sought a major customer to give momentum to its fledgling CSeries jets.
On the economic beat, Statistics Canada reported that those drawing regular employment insurance premiums hiked 3,200, or 0.6%, in November to 544,200.
The agency added that, on a year-over-year basis, the total number of EI beneficiaries was up 45,800 or 9.2%, the largest increase since February 2010. About two-thirds of this increase was in Alberta.
ON BAYSTREET
The TSX Venture Exchange regained 1.56 points to 475.30.
Nine of the 13 TSX subgroups moved into positive territory, with metals and mining vaulting 6.3%, energy better by 5.6%, and financials up 1.3%.
The four laggards were weighed by gold, down 3.8%, materials, weakening 1.9%, and industrials off 1.5%.
ON WALLSTREET
U.S. stocks traded higher Thursday, trying to extend Wednesday's late-session recovery as oil bounced from multi-year lows.
The Dow Jones industrial average recovered from a 200-point-plus loss Wednesday to jump 260.65 points, or 1.7%, to reach noon at 16,027.39, with Home Depot contributing the most to gains.
The S&P 500 regained 18.99 points, or 1%, to 1,878.32. Energy rose more than 3% to lead the S&P 500 higher.
The NASDAQ index gained 62.59 points, or 1.4%, to pause for lunch at 4,534.27.
As of morning trade Thursday, the major U.S. indexes were down about 9% or more for the year so far and more than 10% below their 52-week intraday highs, in correction territory.
Oil continued to trade near lows not seen since 2003, with U.S. crude trying for gains, up about 6% above $29.96 U.S. a barrel as of shortly after noon. ET, and briefly traded above $30.00 U.S.
Data released late Wednesday by the American Petroleum Institute showed crude inventories rose by 4.6 million barrels, while the EIA reported commercial crude inventories rose by about four million barrels. Crude inventories climbed to the highest level since 1990.
Elsewhere on the data front, weekly jobless claims came in at 293,000, a six-month high. The January Philadelphia Fed index showed minus 3.5.
Also supporting gains were morning comments from European Central Bank President Mario Draghi that raised hopes of more stimulus as early as the March meeting.
Draghi expressed the view that downside risks have increased again and the central bank needs to review, possibly reconsider policy stance at the next meeting. Draghi also said the central bank has the power, willingness and determination to act, noting it has plenty of instruments.
Prices for the 10-year Treasury fell back, raising yields to 2.01% from Wednesday’s 1.99%. Treasury prices and yields move in opposite directions.
Oil prices spiked 99 cents a barrel to $29.34 U.S.
Gold prices retreated $6.47 to $1,094.45 U.S. an ounce.
Related Stories
