Toronto's main stock index rose on Wednesday after the Bank of Canada raised interest rate by an expected 25-basis points and Wall Street stocks got a lift on signs of cooling inflation in the U.S.
The TSX hiked 154.72 points to greet noon EDT Wednesday at 20,033.28.
The index has underperformed so far this year, rising over 3% compared to an over 16% rise in the U.S. S&P 500 index, weighed down by volatile commodity prices on a weak demand outlook from top consumer China.
The Canadian dollar climbed 0.29 cents to 75.86 cents U.S.
Laurentian Bank of Canada jumped $8.80, or 26.3%, to $42.33, after the country's ninth largest bank said it is conducting a review of strategic options.
Aritzia tumbled $6.53, or 19.4%, to $27.10 after TD Securities downgraded the apparel and accessories retailer to "hold" from "buy".
MTY Food Group rose $3.71, or 5.8%, to $67.71.
The Bank of Canada today increased its target for the overnight rate a quarter-percentage point to 5%, with the Bank Rate at 5.25% and the deposit rate at 5%. The Bank is also continuing its policy of quantitative tightening.
ON BAYSTREET
The TSX Venture Exchange regained 4.34 points around lunch time to 622.40.
All but three of 12 TSX subgroups gained ground, with gold surging 3.7%, materials mightier by 2.8%, and real-estate up 1.6%.
The three laggards were health-care, communications and consumer staples, each down 0.3%.
ON WALLSTREET
U.S. stocks jumped Wednesday as traders cheered new data that showed inflation rose less than expected last month.
The Dow Jones Industrials gathered 163.56 points to stop for noon hour at 34,424.98.
The S&P 500 hiked 29.42 points to 4,468.68
The NASDAQ index climbed 107.32 points, or 1.4%, to 13,868.02.
Bank stocks jumped on Wednesday. Citigroup and Goldman Sachs saw shares rally 2.9% and 2.5%, respectively. Regional banks also saw gains, with Comerica adding 5.1%, and Zions Bancorporation surging 4.9%.
The consumer price index rose 3% on a year-over-year in June. Economists polled by Dow Jones expected a 3.1% increase. Month over month, the index rose 0.2% last month, also less than forecast. On top of that, core CPI — which strips out volatile food and energy prices — also rose less than expected.
Prices for the 10-year Treasury were sharply higher, lowering yields to 3.86% from Tuesday’s 3.98%. Treasury prices and yields move in opposite directions.
Oil prices improved 88 cents to $75.71 U.S. a barrel.
Gold prices soared $24.00 to $1,961.10 U.S. an ounce.
