Equities in Canada’s largest centre neared a record high on Wednesday as hopes of loose monetary policies and a steady economic rebound lifted demand for global equities.
The TSX Composite began Wednesday stronger 69.26 points to 20,652.20.
The Canadian dollar tallied a dime to 79.36 cents U.S.
The U.S. rail regulator on Tuesday rejected a voting trust structure that would have allowed Canadian National Railway to proceed with its $29-billion proposed acquisition of U.S. peer Kansas City Southern.
CN shares vaulted $8.21, or 5.5%, to $156.61, while those for Kansas City Southern climbed $7.62, or 2.7%, in New York, to $288.29.
Meantime, CIBC raised the price target on CN to $158.00 from $145.00
Credit Suisse raised the target price on Bank of Montreal to $147.00 from $144.00. BMO shares moved higher 82 cents to $126.38.
National Bank of Canada resumed coverage on MDF Commerce with a sector perform rating. MDF shares acquired 18 cents, or 2.4%, to $7.70.
On the economic slate, in the meeting between the Organization of the Petroleum Exporting Countries and allies, the producer club is expected to stick to a plan to add 400,000 barrels per day each month through to December.
IHS Markit Canada‘s seasonally- adjusted Manufacturing Purchasing Managers’ Index registered 57.2 in August, up from 56.2 in July. The latest reading extended the period of growth to 14 successive months, with the latest expansion the fourth quickest in the near 11-year history of the survey.
On the campaign trail, Conservatives hammered Prime Minister Justin Trudeau on Tuesday after data showed that the country's economy unexpectedly shrank in the second quarter and again in July, putting the economy at the center of debate three weeks ahead of a national election.
ON BAYSTREET
The TSX Venture Exchange improved 6.64 points to 903.18
All but three of the 12 TSX subgroups were positive in the first hour, with industrials booming 1.9%, information technology better by 0.7%, and consumer staples moving ahead 0.6%.
The three laggards proved to be materials, down 0.8%, while gold and energy each slumped 0.5%.
ON WALLSTREET
U.S. stocks rose slightly Wednesday led by technology shares after the S&P 500 notched a seven-month win streak in August.
The Dow Jones Industrials dropped 50.9 points to start the day at 35,309.83.
The S&P 500 plowed ahead 5.22 points to 4,527.90. The index has had a pretty smooth ride so far in 2021, up more than 20% without even a 5% pullback. The benchmark has closed above its 200-day average, for 296 days in a row.
The NASDAQ Composite jumped 85.14 points, to 15,341.37, thanks to a 1.7% jump in Apple shares to an all-time high.
The major averages all finished higher for the month of August. The S&P 500 rose 2.9% for the month, posting its best winning streak since 2017. The NASDAQ gained about 4% for its third positive month and while the Dow lagged, it still added 1.2%.
Solar stock Sunrun surged 7% after JPMorgan predicted a comeback that would take the shares 90% higher.
Zoom Video shares rebounded 2.8% following a 16% plunge Tuesday after Cathie Wood revealed she bought nearly 200,000 shares on the dip.
Investors digested a disappointing employment report. U.S. companies created far fewer jobs than expected in August with private payrolls rising just 374,000, according to payroll services firm ADP. That is well below the Dow Jones estimate of 600,000.
The report is a precursor to the official August U.S. non-farm payrolls data, which will be released Friday. Economists polled by Dow Jones expect 720,000 jobs were created in August and the unemployment rate fell to 5.2%.
Prices for 10-Year Treasurys were moved higher, lowering yields to 1.30% from Tuesday’s 1.31%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.08 to $67.42 U.S. a barrel.
Gold prices fell $1.40 to $1,816.70 U.S. an ounce.
