Equities in Canada’s largest centre edged higher on Wednesday to more than a month's high as miners and energy firms rose, while annual producer inflation eased further in the month of December raising hopes of less-hawkish Bank of Canada.
The TSX rocketed 160.43 points to open Wednesday at 20,617.89.
The Canadian dollar tailed off 0.01 cents at 74.66 cents U.S.
France's BNP Paribas said that it had received all the necessary regulatory approvals to complete its previously announced sale of its U.S. unit Bank of the West to Bank of Montreal. Shares in “The First Canadian Bank” added 79 cents to $132.80.
In a legal filing, Rogers Communications said its $20-billion acquisition of rival Shaw Communications has been delayed long enough and must be allowed to proceed despite the competition bureau's opposition.
Rogers shares dropped 40 cents to $64.97, while Shaw shares gained 12 cents to $38.40.
On the economic calendar, Statistics Canada’s industrial product price index declined 1.1% month over month in December and was up 7.6% year over year. The raw materials price index The Raw Materials Price Index fell 3.1% on a monthly basis in December and increased 7.5% year over year.
ON BAYSTREET
The TSX Venture Exchange rebounded 9.17 points, or 1.5%, to 626.55.
All but two of the 12 subgroups were positive in the first hour, with energy gushing 2%, materials better by 1.7%, and information technology clicking 1.5% higher.
The two laggards were communications, down 0.3%, and consumer staples, off 0.03%.
ON WALLSTREET
The S&P 500 rose on Wednesday after the latest data provided another sign that inflation, while still high, is beginning to ease.
The broad market index jumped 15.05 points to 4,006.02.
The Dow Jones Industrials lost 33.38 points, to 33,877.47.
The NASDAQ Composite Index added 89.59 points to 11,184.71.
Growth-oriented stocks like Tesla and Plug Power got a lift. Amazon rose more than 1% even as it began a big round of layoffs Wednesday.
Elsewhere, shares of United Airlines rose after the company beat Wall Street’s estimates in the latest quarter, propelled by strong travel demand.
Meanwhile, shares of Moderna jumped after the pharmaceutical company said its vaccine targeting respiratory syncytial virus can prevent the disease in older adults.
The moves came after the latest reading on the producer price index, which measures input costs from companies and could be a leading indicator of future inflation, showed a 0.5% decline for December. Economists surveyed by Dow Jones expected a 0.1% decline. That gave relief to investors who have hoped for inflation to retreat and for the Federal Reserve to slow or stop its rate hikes.
Prices for the 10-year Treasury were up sharply, lowering yields to 3.39% from Tuesday’s 3.55%. Treasury prices and yields move in opposite directions.
Oil prices hiked $1.95 to $82.13 U.S. a barrel.
Gold prices brightened $8.70 to $1,918.60 U.S. an ounce.
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