Canada's main stock index rose on Wednesday, after robust quarterly results in some technology companies improved market sentiment.
The S&P/TSX Composite Index gained 49.38 points to greet noon at 15,342.09
The Canadian dollar recouped 0.06 cents to 76.29 cents U.S.
Helping tech was a 3.8% rise in CGI shares to $82.11, and a 6.9% jump in shares of Solium Capital to $11.95, as both companies posted upbeat quarterly results.
Top percentage gainer on the TSX was Home Capital Group, which jumped 19.8% to $16.87, after quarterly earnings beat estimates.
Keyera Corp fell 7.3%, the most on the TSX, to $31.30, after posting quarterly earnings that fell below expectations.
In the economic docket, Western University’s IVEY Purchasing Managers Index came in at 61.8, springing over the reading of 50.4 for September, but falling short of the 63.8 level for October 2017.
ON BAYSTREET
The TSX Venture Exchange gained 3.6 points midday to 669.77
All but one of the 12 subgroups soared in the morning, as information technology gathered 3%, consumer staples popped 1.5%, and communications were better by 0.9%
Only consumer discretionary, fading 0.8%, missed the festivities.
ON WALLSTREET
U.S. stocks rose broadly on Wednesday after the midterm election results came in about as expected, lifting a cloud of uncertainty that was weighing on the market.
The Dow Jones Industrials leaped 349.84 points, or 1.4%, to 25,984.85, led by UnitedHealth and Microsoft. The Dow was up 3.7% for the year through Tuesday after an October selloff leading up the election cut into its returns.
The S&P 500 hiked 41.58 points, or 1.5%, to 2,797.03, as the health care and tech sectors both rallied more than 2%.
The NASDAQ gained 147.29 points, or 2%, to 7,523.83.
Relief that Republicans held onto the Senate also helped boost stocks, as some investors feared a so-called blue wave clamping down on Trump's agenda.
Democrats won back the House of Representatives while Republicans retained control of the Senate, as the midterm's outcome split Congress. Investors were bullish following the result due to the belief that gridlock in Washington will help the market.
Investors expect President Donald Trump's business-friendly policies to continue, while some expressed optimism about Congress providing a larger check on Trump's more disruptive market actions, such as the trade battle with China. Historically, equity markets see strong returns when Congress is divided
Stocks rallied across multiple sectors, as shares of Caterpillar, Goldman Sachs, Amazon and Alphabet all rose. Caterpillar is seen getting a boost from continued economic growth.
There's also some optimism the president will work with Democrats on an infrastructure plan. Vulcan Materials jumped 6.4%, and United Rentals, improved 1.3%.
Tech shares rose, as a divided Congress could also keep Trump from seriously going after giants like Amazon for being too big and influential on the economy.
Meanwhile, the Federal Reserve is kicking off a two-day meeting on Wednesday. Worries around the pace of interest rate hikes last month saw global markets hit with sharp bouts of volatility. Markets have been pricing in a higher probability of the Fed raising rates again in December, with further tightening seen through 2019.
Prices for the benchmark for the 10-year U.S. Treasury grew, lowering yields to 3.19% from Tuesday’s 3.22%. Treasury prices and yields move in opposite directions.
Oil prices slumped 64 cents to $61.57 U.S. a barrel.
Gold prices added $2.70 an ounce to $1,229 U.S.
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