The Toronto stock market was sharply higher mid-session after the European Central Bank announced a program designed to help alleviate higher borrowing costs that have squeezed the most vulnerable members of the euro-zone, including Spain and Italy.
The S&P/TSX Composite index moved up 123.27 points, or 1%, to greet noon Thursday at 12,113.41
The Canadian dollar jumped 0.81 cents to 101.79 cents U.S.
ON BAYSTREET
The TSX Venture Exchange gained 13.31 points to 1,259.58.
All 14 Toronto subgroups remained positive by noon, led by metals and mining stocks, up 2.6%, global base metals, ahead 2.5%, while energy stocks advanced 2.2%.
ON WALLSTREET
A rally on Wall Street gained momentum Thursday as investors welcomed better-than-expected reports on the U.S. labour market and the European Central Bank's bond-buying plan.
The Dow Jones industrial average sprinted ahead 235.15 points, or 1.8%, to see midday at 13,282.60
The advance was broad, with all 30 components of the Dow moving higher. Bank stocks were leading the gains on the blue-chip index with shares of Bank of America and JPMorgan Chase soaring more than 4%. About 97% of the S&P 500 was trading in positive territory.
The S&P 500 index gained 26.56 points to 1,430, and the tech-heavy Nasdaq Composite Index was higher by 63.07 points to 3,132.34
Amazon is expected to unveil a new Kindle line Thursday afternoon. Last week the company reported that its Kindle Fire had sold out.
Shares of Walgreen were lower after the company reported disappointing August sales.
Corporate results are due after the bell Thursday from apparel company Quiksilver and gunmaker Smith & Wesson
Speaking after a meeting of top ECB officials in Frankfurt, the central bank's president, Mario Draghi, reiterated his pledge to do "whatever it takes" to preserve the euro and said the ECB is prepared to make "outright monetary transactions," or OMTs, in the secondary market for euro-area government bonds.
The move is aimed at Spain and Italy, which struggled with unsustainable borrowing costs earlier this year.
Investors hope Thursday's data is a preview of what the U.S. employment picture looks like ahead of Friday's monthly jobs report.
The government is expected to report Friday that employers added 120,000 jobs in August, according to economists. Investors will be paying especially close attention to Friday 's jobs report, since it will likely influence the Federal Reserve's decision on whether it will announce more quantitative easing at the conclusion of its next meeting on Sept. 12-13.
Economically speaking, employment in the U.S. non-farm private business sector increased by 201,000 from July to August, according to ADP's National Employment Report. The estimated gain from June to July was revised up, from the initial estimate of 163,000 to a revised estimate of 173,000.
The numbers blew past expectations, as economists surveyed by Briefing.com had forecast an increase of 143,000 jobs.
Another upbeat report showed that jobless claims decreased to 365,000 during the week ending September 1, down 12,000 from the previous week's revised 377,000 figure, according to the U.S. Labor Department. This is less than the 373,000 claims that were expected by economists surveyed by Briefing.com.
These jobs numbers follow a report from outplacement firm Challenger, Gray & Christmas, which showed more than 32,000 planned job cuts in August -- fewer layoffs than were announced in July.
The Institute for Supply Management said its index of activity in the service sector increased to 53.7 in August from 52.6 in July. The index was expected to come in at 52.4, according to a survey of analysts by Briefing.com.
The price on the benchmark 10-year U.S. Treasury slumped, raising yields to 1.67% from Wednesday’s 1.59%. Treasury prices and yields move in opposite directions.
Oil prices for September delivery vaulted $1.50 to $96.86 U.S. a barrel.
Gold futures for December delivery gained $16.20 to $1,707.80 U.S. an ounce.
