Canada's main stock index reversed early losses on Thursday, as strong gains in energy and mining firms countered interest rate jitters and market uncertainty caused by the resignation of Liz Truss as U.K. prime minister.
The TSX Composite moved higher 71.86 points to pause for lunch Thursday at 18,746.26.
The Canadian dollar gathered 0.03 cents to 72.91 cents U.S.
In company news, German motor giant Mercedes signed a 1.5-bln euro deal with Canadian-German Rock Tech
Lithium to receive on average 10,000 tons of
battery-grade lithium hydroxide per year.
Rock Teck shares zoomed 46 cents, or 15.9%, to $3.36.
Rogers Communications said its wireline services have been restored after a brief disruption it blamed on a fibre cut caused by a third party. The cable giant was hit with a massive national outage in July which affected millions of users.
Shares of the beleaguered company were down 11 cents to $52.76.
The TSX snapped a two-day rally on Wednesday, largely driven by earnings optimism as data showed inflation in Canada edged lower in September but still surpassed forecasts and was well above the Bank of Canada's target.
That spurred expectations that the bank would hike interest rates by 75 basis points instead of 50 basis points at its policy meeting next week, even as recession worries intensify.
ON BAYSTREET
The TSX Venture Exchange gained 3.48 points to 590.87.
Eight of the 12 TSX subgroups had risen by noon, as gold accumulated 2.4%, health-care improved 2.2%, and materials hiked 2.1%.
The four laggards were led by utilities, off 1.1%, industrials, lower by 0.9%, and financials, down 0.3%.
ON WALLSTREET
Stocks rose slightly on Thursday as investors weighed several key earnings reports and kept an eye on the bond market, where Treasury yields continue to climb.
The Dow Jones Industrials shot higher 98.32 points to 30,522.13, off its highs of the morning.
The S&P 500 lopped off 0.03 points to 3,695.13.
The NASDAQ climbed 40.92 points to 10,721.42.
Several strong earnings reports were supporting the market, with AT&T and IBM rising 8% and 4%, respectively, after beating estimates on the top and bottom lines for their most recent quarter.
On the downside, Tesla shares dropped 5% after the electric vehicle maker said Wednesday evening it expects to miss its 2022 deliveries target. The company also posted a quarterly revenue that missed analyst expectations.
On the economic front, the weekly jobless claims showed a surprise decline in initial filings, but the Philadelphia Fed index showed a contracting manufacturing sector.
Treasury prices edged off a bit, raising yields to 4.18% from Wednesday’s 4.13%. Treasury prices and yields move in opposite directions.
Oil prices grabbed 30 cents to $85.85 U.S. a barrel.
Gold prices acquired $9.40 to $1,643.60 U.S. an ounce.
