Equity markets in Canada’s largest centre reached for the stars 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 121.75 points, or 1%, to close Tuesday at 12,982.10
The Canadian dollar acquired 0.68 cents to 74.51 cents U.S.
Bank of Nova Scotia jumped 5.8% to $57.93 as the last of Canada's main banks to report quarterly earnings notched a 5% increase in net income and raised its dividend.
Royal Bank of Canada added 1.6% to $70.14, while Toronto-Dominion Bank was up 1.7% at $53.34.
The energy sector gained, in line with a move higher in oil prices. Suncor Energy rose 1.6% to $33.62
TransCanada Corp fell 0.8% to $49.27 after the province 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 beating profit expectations on improved margins in its prepared meats business.
The materials group, which includes precious and base metals miners and fertilizer companies, lost ground, thanks in part to a 5.2% drop in Barrick Gold to $17.82.
Valeant Pharmaceuticals International 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 6.9% to $87.94, after hitting its lowest since May 2013 at $80.38.
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 0.04 points to 541.69
All but two of the 13 TSX subgroups closed the day upward, as metals and mining climbed 2.5%, utilities improved 2.3%, and financials jumped 2.2%.
The two laggards were gold, shunning 4.7%, and materials, falling 2.3%
ON WALLSTREET
U.S. stocks kicked off March with their best start to a month in more than three years.
The Dow Jones Industrial average leaped 348.59 points, or 2.1%, to 16,865.08. Goldman Sachs was the top contributor to gains, followed by Apple, which closed nearly 4% higher at $100.53 U.S. a share.
United Technologies closed off session lows, down 1.6%, as the only decliner in the Dow after Honeywell said it is no longer pursuing its bid for the company. Shares of Honeywell gained 4.5%
The S&P 500 added 46.12 points, or 2.4%, to 1,978.35, with financials leading nine advancers and utilities the only laggard.
The NASDAQ index popped 131.64 points, or 2.9%, to 4,689.59,
The major averages benefited from a rise in oil prices and a better-than-expected Institute for Supply Management manufacturing report.
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.
February auto sales rose about 7% from the same period last year, with Autodata reporting an annualized sales rate of 17.54 million. Last year, U.S. auto sales hit a record 17.4 million vehicles
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 1.82% from Monday’s 1.74%. Treasury prices and yields move in opposite directions.
Oil prices dipped 52 cents a barrel to $33.88 U.S.
Gold prices were down 40 cents to $1,231.75 U.S. an ounce.
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