Mining stocks drove Canada's main stock index to a multi-week high Thursday, the last full day of spring, as gold prices surged following a more dovish than expected stance from the U.S. Federal Reserve.
The S&P/TSX Composite Index marched ahead 63.09 points to finish Thursday’s session at 16,574.83
The Canadian dollar grew 0.46 cents to 75.80 cents U.S.
The largest percentage gainer on the TSX was Eldorado Gold which hiked 70 cents, or 11.7%, to $6.70, as Yamana Gold rose 27 cents, or 9.2%, to $3.21.
Materials stocks were also full of muscle, as SSR Mining improved 55 cents, or 3.2%, to $17.79, while Fortuna Silver Mines scaled 28 cents, or 7.8%, to $3.82
In the oil patch, Crescent Point Energy gushed 35 cents, or 8.5%, to $4.48, while Precision Drilling strengthened 18 cents, or 7.9%, to $2.47.
Consumer staples took the biggest knocks of all the losing subgroups, as Cott Corp. lost 54 cents, or 2.9%, to $17.81, while Alimentation Couche-Tard fell back $2.40, or 2.7%, to $85.27.
Communications also got bruised, as Cineplex slipped 51 cents, or 2.1%, to $23.42, while Rogers surrendered 98 cents, or 1.4%, to $69.76.
Among techs, BlackBerry turned lower 51 cents, or 4.3%, to $11.38, while Quarterhill gave back four cents, or 2.7%, to $1.42.
On the economic front, Statistics Canada reported 438,000 Canadians drawing employment insurance in April, up only 1,400 from the month before.
ON BAYSTREET
The TSX Venture Exchange leaped 8.65 points, or nearly 1.5%, at 593.26
Seven of the 12 Toronto subgroups stayed in the green, with gold shining 3.3% brighter, energy gushing 2.5%, and materials stronger by 2.3%.
The five laggards were saddled most by consumer staples, down 1.7%, communications, hesitating 1.1%, and real-estate, off 0.2%.
ON WALLSTREET
Stocks rallied on Thursday, led by strong gains in tech and energy shares, as Wall Street cheered the possibility that the Federal Reserve will cut interest rates next month.
The Dow Jones Industrial Average thundered higher 249.17 points to 26,753.17, to within 1% of its record high,
The S&P 500 gained 27.72 points, or nearly 1%, to 2,954.18, hitting a record high as the tech and energy sectors outperformed.
The NASDAQ Composite gained 64.02 points to 8,051.34
Thursday’s gains cut most of the steep losses recorded by the major indexes in May. The S&P 500 and Dow both fell more than 6% while the NASDAQ lost 7.9% last month. The three indexes were up more than 7% for June.
The energy sector rose more than 2% to lead all 11 S&P 500 sectors higher as oil prices jumped. Tech gained 1.4% after shares of Oracle surged more than 8% on stronger-than-forecast earnings. General Electric’s 2.8% rise pushed the industrials sector up more than 1.6% on the day.
Energy shares got a boost from higher oil prices, as shares of Exxon Mobil gained 1.7%. Oil prices surged 5.4% after a U.S. official said a drone was shot down over Iranian airspace.
Meanwhile, Slack shares surged more than 40% in their first day of trading. The stock closed above $38 after setting a reference price of $26.
The Fed said Wednesday it stands ready to battle growing global and domestic economic risks as they took stock of intensifying trade tensions and growing concerns about inflation.
Most Fed policymakers slashed their rate outlook for the rest of the calendar year by approximately half a percentage point in the previous session, while Chairman Jerome Powell said others agree the case for lower rates is building.
Market participants viewed the overall tone from the U.S. central bank as more dovish than expected. Traders are now pricing in a 100% chance of a rate cut next month
Prices for the benchmark 10-year U.S. Treasury gained slightly, causing yields to fade to 2.02% from Wednesday’s 2.03%. Treasury prices and yields move in opposite directions.
Oil prices perked $3.12 to $56.88 U.S. a barrel.
Gold prices zoomed $44.80 to $1,393.40 U.S. an ounce.
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