Equities in Toronto jumped to an over-three-week high on Thursday, as early data suggested the omicron variant of the coronavirus was less severe than feared, while gains in industrial shares further lifted the sentiment.
The S&P/TSX Composite zoomed 158.47 points, to approach noon Thursday at 21,228.52.
The Canadian dollar added 0.18 cents at 77.99 cents U.S.
Industrials were among the leading gainers, with Bombardier acquiring seven cents, or 4.2%, to $1.75, while Boyd Group raced $6.80, or 3.4%, to $204.92.
Financials also fared well Thursday morning, as Sprott gathered $1.37, or 2.4%, to $57.50, while goEasy climbed $2.82, or 1.6%, to $174.80.
Among consumer discretionary stocks, Martinrea picked up 42 cents, or 3.9%, to $11.30, while Linamar moved higher $1.74, or 2.4%, to $74.64.
In things economic, Statistics Canada’s Survey of Employment, Payrolls and Hours as payroll employment rose by 131,700 (+0.8%) in October, bringing it to within 0.6 percentage points of its pre-pandemic February 2020 level.
Meanwhile, Gross Domestic Product rose 0.8% in October on broad-based increases across sectors.
Moreover, Canada will temporarily expand support programs to help people and businesses hit by the Omicron variant of COVID-19, warning people that worse was yet to come as the virus spreads.
The risk of needing to stay in hospital for patients with the Omicron variant is 40% to 45% lower than for patients with the Delta variant, according to research by London's Imperial College published on Wednesday.
ON BAYSTREET
The TSX Venture Exchange recovered 2.56 points to 918.73.
All but one of the 12 TSX subgroups gained ground, with financials, industrials and consumer discretionary stocks each picking up 0.9%.
Only real-estate missed the boat, declining 0.1% by lunch time.
ON WALLSTREET
The major averages rose for a third day on Thursday as investors looked past earlier jitters about the spread of the omicron COVID variant.
The Dow Jones Industrials advanced 221.40 points to move into Thursday afternoon at 35,975.29, bringing its three-day rally to more than 1,000 points.
The S&P 500 index hiked 33.97 points to 4,730.53, on track for a winning week.
The NASDAQ popped 126.83 points at 15,648.72.
Thursday’s gains were broad across the board, although on light volume. Bank shares were higher, along with Big Tech stocks Microsoft and Nvidia.
U.S. markets are closed Friday for the Christmas holiday.
Reopening plays like airlines and cruise lines were some of the biggest winners this week during the comeback. Carnival Corp. is up 15% since Monday. Hilton Worldwide rallied 8.6% this week.
Helping boost sentiment were new studies suggesting that omicron has a lower risk of hospitalization than other COVID variants.
Economic data out Thursday morning down south showed a strong economy with improving labour and spending trends, but inflation at uncomfortable levels.
Jobless claims for the week ended December 18 came in about as expected at 205,000. Durable goods for November rose 2.5%, compared to the 1.5% Dow Jones estimate. Personal income and spending showed increases for November.
But on the inflation side, the Federal Reserve’s closely watched core personal consumption expenditures index rose 0.6% in November from the month prior. Core PCE rose 4.7% year-over-year in November, higher than the 4.5% rate expected.
Prices for 10-year were pitched lower, raising yields to 1.49% from Wednesday’s 1.46%. Treasury prices and yields move in opposite directions.
Oil prices gained 68 cents to $73.44 U.S. a barrel.
Gold prices brightened $5.80 to $1,808 U.S. an ounce.
