Equities in Canada’s largest market gained ground on Tuesday, led by financial shares after the country's third-largest bank reported a rise in quarterly profit, while domestic data revealed the economy grew more than expected in the fourth quarter.
The S&P/TSX Composite Index hiked 110.44 points to greet noon Tuesday at 12,970.79
The Canadian dollar acquired 0.78 cents to 74.61 cents U.S.
Bank of Nova Scotia rose 4.4% to $57.18 after it reported a 5% increase in first-quarter net income, helped by growth in its international banking business.
Royal Bank of Canada added 1.8% to $70.33, while Toronto-Dominion Bank was up 1.5% at $53.22.
The energy sector advanced as oil prices rose to a two-month high. The momentum within the sector included a 1.1% increase for Suncor Energy Inc to $33.43.
TransCanada Corp inched up 0.7% to $50.02 after the province of Quebec said it was seeking an injunction to compel the company's proposed Energy East oil pipeline to be reviewed under the province's environmental laws.
Maple Leaf Foods Inc jumped more than 8% to $24.65 after the Canadian pork processor posted a better-than-expected fourth-quarter profit as margins in its prepared meats business improved.
Valeant Pharmaceuticals International Inc was the biggest drag on the index for a second consecutive day. It said on Monday it is under investigation by the U.S. Securities and Exchange Commission.
The company's shares fell 10.8% to $84.25, having hit its lowest point since May 2013 at $83.00
Gold stocks also fell, including a 4.8% drop in Barrick Gold to $17.89.
On the economic scene, Statistics Canada reported that real gross domestic product grew 0.2% in December, after rising 0.3% in November. GDP grew 0.2% in the fourth quarter, following a 0.6% increase in the third quarter. Real GDP advanced 1.2% in 2015, about half the pace recorded in 2014
RBC reported that its Canadian Manufacturing Purchasing Managers’ Index registered 49.4 in February, up fractionally from 49.3 in January, but below the neutral 50.0 threshold for the seventh month in a row. Nonetheless, the latest reading was the highest since August 2015, largely reflecting a softer decline in production levels during February.
The headline RBC PMI reflects changes in output, new orders, employment, inventories and supplier delivery times.
ON BAYSTREET
The TSX Venture Exchange faded 0.55 points to 541.18
Nine of the 13 TSX subgroups began the day higher, as utilities clicked higher 2.2%, financials jumped 2%, and the metals and mining sector spiked 1.8%.
The four laggards were weighed most by gold, plunging 4.6%, materials, down 2.1%, and health-care 1.2%.
ON WALLSTREET
U.S. stocks kicked off March solidly Tuesday, helped by a rise in oil prices and a better-than-expected Institute for Supply Management manufacturing report.
The Dow Jones Industrial average leaped 283.89 points, or 1.7%, to 16,800.39, as Goldman Sachs and IBM contributed the most to gains on the Dow.
United Technologies held about 2.5% lower in morning trade as the greatest contributor to declines in the Dow after Honeywell said it is no longer pursuing its bid for the company.
The S&P 500 added 33.67 points, or 1.7%, to 1,965.90, with information technology and financials leading advancers in late-morning trade.
The NASDAQ index popped 101.24 points, or 2.2%, to 4,659.19, as Apple and Amazon traded higher.
February ISM manufacturing came in at 49.5, about one point above expectations and topping January's 48.2 print. However, the figure still remained below the 50 contraction-expansion level.
Construction spending rose 1.5% in January to its highest level since 2007.
Initial reports on February auto sales continued to show growth for most major automakers.
The Markit manufacturing PMI for February came in at 51.3, up from the flash 51.0 print but down from January's final 52.4 read.
Prices for the 10-year Treasury dropped sharply, raising yields to 1.83% from Monday’s 1.74%. Treasury prices and yields move in opposite directions.
Oil prices recovered 53 cents a barrel to $34.28 U.S.
Gold prices plummeted $10.13 to $1,228.54 U.S. an ounce.
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