Canada's main stock index touched a fresh record for a fourth straight day on Wednesday, mirroring new highs on Wall Street, as higher commodity prices fueled energy and mining stocks and drove broad-based gains.
The S&P/TSX Composite Index came off its highs of the morning, but gained 30.9 points to greet noon at 16,056.49, improving on Tuesday’s all-time record.
The Canadian dollar regained 0.02 cents to 77.59 cents U.S.
Suncor Energy rose 1.2% to $44.31 while Encana surged 3.6% to $15.63. The two companies were the most influential drivers on the index and helped lift the overall energy sector for its fifth day of gains. The sector has advanced some 9% over that period.
Nuvista Energy jumped 7.6% to $8.63 after analysts raised their ratings and price targets following the company's third-quarter results.
The materials group, which includes precious and base metals miners and fertilizer companies, added strength, as gold prices rose on caution ahead of the U.S. Federal Reserve policy statement and this week's confirmation of the new Fed chair.
Nickel prices also surged nearly 6% to two-year highs on demand expectations.
First Quantum Minerals rallied 5.6% to $15.24, while Teck Resources advanced 3.4% to $27.26. Goldcorp was up 2.4% at $17.25.
Financial services stocks edged up, but gains were tempered by a 6.4% drop to $56.46 in shares of Thomson Reuters after the company reported a revenue miss amid uncertainty in Europe.
Industrials were among the few declining sectors, with WestJet Airlines Ltd slumping 5% to $25.60.
On the economic beat, the seasonally-adjusted IHS Markit Canada Manufacturing Purchasing Managers’ Index dipped to 54.3 in October from 55.0 in September.
ON BAYSTREET
The TSX Venture Exchange hiked 4.34 points to 789.04
Eight of the 12 TSX subgroups were positive midday, as materials sparkled 1.2%, energy triumphed 1.1%, and gold gained 0.9%.
The four laggards were weighed by information technology, skidding 1.3%, industrials, off 0.6%, and utilities, doffing 0.2%.
ON WALLSTREET
U.S. equities rose to record highs on Wednesday ahead of the latest monetary policy announcement from the Federal Reserve. Stocks also followed overseas markets, which rose overnight along with major commodity prices.
The Dow Jones industrial average gained 55.19 points to 23,432.43, with Pfizer leading advancers. The 30-stock index also traded at a record high.
The S&P 500 surged 5.41 points to 2,580.67, to an all-time high, with energy leading advancers. Estee Lauder was the best-performing individual stock in the index, rising 9%. The company posted better-than-expected quarterly results.
The NASDAQ faded 5.85 points to 6,721.82 from Tuesday’s record. Facebook and Apple both hit all-time highs.
The Fed is largely expected to keep interest rates unchanged. Market expectations for a rate hike Wednesday are just 1.5%. Investors will, however, look for further confirmation that the central bank will raise rates in December.
In economic news, the U.S. private sector added 235,000 jobs in October, according to a report from ADP and Moody's. Economists expected a gain of 200,000 jobs.
The ADP report usually serves as a preview to the government's monthly jobs report, which is scheduled for release Friday.
Other data released Wednesday include the Institute for Supply Management manufacturing index, which hit 58.7 in October, as well as construction spending, which rose 0.3%.
Prices for the benchmark 10-year Treasury note were up slightly, lowering yields to 2.37% from Tuesday’s 2.38%. Treasury prices and yields move in opposite directions.
Oil prices dropped six cents a barrel to $54.32 U.S.
Gold prices gained seven dollars an ounce to $1,277.50 U.S.
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