Canada's main stock index gave up some gains on Wednesday after the Bank of Canada flagged risks to the global economy from the U.S.-China trade battle, but left interest rates unchanged as expected.
The S&P/TSX Composite gained 1065.34 to greet noon at 16,464.57
The Canadian dollar gained 0.42 cents to 75.39 cents U.S.
The largest percentage gainers on the TSX were First Quantum Minerals, which jumped 53 cents, or 6.5%, to $8.70, and Precision Drilling which rose 11 cents, or 6.8%, to $1.72.
Nexgen Energy fell five cents, or 3%, the most on the TSX, to $1.62. The second biggest decliner was Restaurant Brands International, down $2.28., or 2.2%, to $100.03.
As expected, the Bank of Canada left its trendsetting rate unchanged at 1.75% Wednesday. The Bank Rate is correspondingly 2% and the deposit rate is 1.5%
Elsewhere on the economic front, Statistics Canada reported that imports rose 1.2% in July, while exports fell 0.9%. As a result, Canada's merchandise trade balance with the world went from an essentially balanced position in June to a $1.1-billion deficit in July.
ON BAYSTREET
The TSX Venture Exchange dipped into the red 3.43 points to 588.85
Eight of the 12 Toronto subgroups remained positive approaching noon ET, as energy shot higher 1.7%, while industrials and consumer staples each soared 0.7%.
The four laggards were weighed most by health-care, diving 1.5%, gold, settling 0.8%, and materials, off 0.1%.
ON WALLSTREET
Stocks rose on Wednesday as tensions in Hong Kong between the government and protesters eased after the withdrawal of a controversial bill.
The Dow Jones Industrial Average sprang up 210.86 points to 26,328.88
The S&P 500 took on 26.97 points to 2,933.24
The NASDAQ Composite leaped 84.26 points, or 1.1%, to 7,958.66
Caterpillar shares gained 1.6% while Micron Technology advanced nearly 5%. Intel was the best-performing stock in the Dow, rising nearly 3%.
Bank stocks also got a boost as the U.S. yield curve uninverted, with the 10-year rate trading above its two-year counterpart. Bank of America and Citigroup gained more than 1% each while J.P. Morgan Chase advanced 1%.
Hong Kong leader Carrie Lam said that she will withdraw a contentious extradition bill that has sparked months of mass protests. The Hang Seng index in Hong Kong had soared around 4% on reports overnight that the withdrawal of the bill was imminent.
The bill’s withdrawal is seen as a positive because protest escalation was seen as a potential disruptor to the global economy. Some investors feared the protests could hinder U.S.-China trade talks
Prices for the benchmark 10-year U.S. Treasury gained ground, lowering yields to Tuesday’s 1.47%. Treasury prices and yields move in opposite directions
Oil prices improved $2.21 to $56.15 U.S. a barrel.
Gold prices notched forward 20 cents to $1,556.10 U.S. an ounce.
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