Stocks in Toronto finally broke their losing streak, after U.S. Federal Reserve officials signaled a slower pace of interest-rate increases.
The S&P/TSX Composite gathered 39.22 points to close Wednesday at 13,923.45, ending a five-day losing streak for the gauge that sent it down 3.4% to a one-month low.
The Canadian dollar dipped 0.29 cents to 77.4 cents U.S.
Shares of raw-materials companies led gains. Teck Resources Ltd. Hiked 75 cents, or 5.3%, to $14.88, and First Quantum Minerals rose 47 cents, or 5.8%, to $8.64.
Gold had something of a banner day, too, as Yamana Gold hurtled 36 cents, or 5.8%, higher to $6.56, and Kinross Gold triumphed 21 cents, or 3.2%, to $6.76.
Shares of consumer-staples companies fell, dragged down by Alimentation Couche-Tard Inc.s 39-cent decline to $53.49.
Energy skidded as Baytex Energy dropped six cents to $7.23, and Suncor backpedaled 19 cents to $33.96.
Economically speaking, Statistics Canada reported manufacturing sales rose 1.0% to $50.4 billion in April, ending a two-month losing streak.
Meanwhile, the Canadian Real Estate Association reported national home sales dropped 2.8% in May, after setting new records in April. Actual (not seasonally-adjusted) activity was up 9.6% compared to May 2015.
ON BAYSTREET
The TSX Venture Exchange grew 6.28 points to 714.03
All but three of the 13 TSX subgroups gained ground, with metals and mining stocks surging 3.9%, while gold zoomed 3.7%, and materials climbed 2.6%.
The three laggards were consumer staples, down 0.5%, energy, sliding 0.4%, and financials, shedding 0.1%.
ON WALLSTREET
U.S. stocks gave up gains to trade lower Wednesday. Earlier, stocks attempted to snap a four-day losing streak, and held higher immediately following the conclusion of the Federal Reserve meeting.
The Dow Jones Industrials gave way 34.65 points to finish Wednesday at 17,640.17, with Home Depot leading advancers and Intelthe greatest decliner.
The S&P 500 dropped 3.82 points at 2,071.50 with materials leading eight sectors higher and health-care and utilities the only decliners.
The NASDAQ lost 8.62 points to 4,834.93
The Fed kept rates unchanged at its June meeting. Six members projected only one hike this year, although the median expectation remained two hikes this year.
In U.S. economic news, industrial production declined 0.4% in May and April's figure was revised lower to show a 0.6% increase versus the previously reported 0.7%. May capacity utilization edged lower from the prior month to 74.9%
The producer price index rose a slightly more-than-expected 0.4% in May, following a 0.2% rise the prior month, the Labor Department said. In the 12 months through May, PPI fell 0.1% after being unchanged in April.
The core PPI that excludes food, energy and trade services fell 0.1% last month after rising 0.3% in April, for a 0.8% rise in the 12 months through May.
The June Empire State Manufacturing Survey rose to 6.0 from a negative 9 print last month. Sub-index components on new orders and shipments also recovered positive territory, while inventories fell further into negative territory and the employment index was zero.
U.S. crude oil futures settled down. Earlier, oil came well off session lows to briefly attempt gains after Energy Information Administration data showed U.S. crude oil stocks declined 933,000 barrels. Late Tuesday, the American Petroleum Institute said crude inventories rose by 1.2 million barrels versus expectations for 2.3 million barrel decline.
Prices for the 10-year Treasury were higher, lowering yields to 1.58% from Tuesday’s to 1.62%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.02 a barrel to $47.47 U.S.
Gold prices regrouped $9.00 to $1,297.10 U.S. an ounce.
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