The Toronto stock market was higher Wednesday with the focus mainly on central banks, as the Bank of Canada left its key rate unchanged and the Federal Reserve offered reassurances on economic stimulus
The S&P/TSX Composite Index gained 51.88 points to end Wednesday at 12,568.77
The Canadian dollar slipped 0.39 cents to 96.06 cents U.S., as the Bank of Canada kept its key rate unchanged at 1% and indicated it is in no rush to raise rates.
Most TSX segments were positive and the base metals sector ran up, even while September copper on the Nymex dipped six cents to $3.13 U.S. a pound.
First Quantum Minerals advanced 37 cents to $16.15 and Rio Alto Mining ran up 11 cents to $2.30. The segment has been strengthening over the last couple of weeks, up 10.9% from its lows of the year from late last month, despite weak copper prices.
Financials rose with Royal Bank ahead $1.22 to $63.80 while Scotiabank gained 91 cents to $58.04.
The industrials group rose as Canadian Pacific Railway gained $1.53 to $133.30.
Tech stocks also lifted the TSX as BlackBerry improved by 15 cents to $9.64.
The energy sector edged up as Canadian Natural Resources was ahead 44 cents to $33.37.
The gold sector lost ground as Iamgold faded 25 cents to $4.61 and Kinross Gold Corp. gave back 15 cents to $5.15.
On the economic slate, Statistics Canada reported that foreign investment in Canadian securities slowed to $6.7 billion in May on lower investment for all types of securities, mainly bonds.
Meantime, Canadian investors sold $1.6 billion in funds from international financial markets in May, mostly U.S. securities.
What’s more, figures released this morning by the Canadian Real Estate Association revealed that the number of home sales rose 3.3% in June. This marks the fourth consecutive monthly increase, with activity now running 11% above where it stood in February.
ON BAYSTREET
The TSX Venture Exchange dipped into the red 0.02 points to 910.82
All but three of the 14 Toronto subgroups were positive on the day, led by financial, up 1.1%, metals and mining, up 1%, and industrials, stronger by 0.9%
The three laggards were weighed mostly by gold, down 2.7%, materials, off 1.3%, and telecoms, sliding 0.04%.
ON WALLSTREET
U.S. stocks held modest gains Wednesday as Federal Reserve chairman Ben Bernanke's nuanced message on Capitol Hill sank in on Wall Street.
But gains were held in check by a weaker-than-expected housing report.
The Dow Jones Industrials took on 18.67 points to finish Wednesday at 15,470.50
The S&P 500 index improved 4.65 points to 1,680.91. The NASDAQ Composite was up 11.50 points to 3,610
Bank of America released its second-quarter results before the opening bell, reporting a 63% surge in quarterly profit to more than $4 billion U.S.
Shares of Mattel fell after the toy maker said earnings fell in the second quarter on charges and strategic investments.
Yahoo shares rose after the company reported a jump in profit, though quarterly sales fell slightly short of both Wall Street's expectations and its own results from a year earlier.
CSX shares rose after the rail company reported quarterly earnings that beat expectations.
Shares of Tesla bounced back after taking a beating Tuesday, when Goldman Sachs issued a price target that was well below where the stock is currently trading.
Results are due Wednesday afternoon from firms including IBM, Intel, eBay and American Express
During testimony before the House Financial Services Committee, Bernanke reiterated that monetary policy will remain "highly accommodative" for the foreseeable future. However, he added that the Fed's $85-billion-U.S. per-month bond buying program is "by no means on a preset course."
Bernanke said that the pace of the program could increase if the economy falters, but he stressed that it could also be reduced "somewhat more quickly" if the recovery accelerates.
In the latest edition of its Beige Book, the Fed said the economic activity across the central bank's districts continued to grow at a "modest to moderate pace."
In other economic news, the number of new homes breaking ground in June fell 10% from May, the Commerce Department said.
Meanwhile, applications for building permits, considered a leading indicator for new home construction, fell 7%. Both figures were worse than expected.
Prices for the 10-year U.S. Treasury spiked, lowering yields to 2.49% from Tuesday’s 2.53%. Treasury prices and yields move in opposite directions.
Oil prices gained 48 cents to $106.48 U.S. a barrel.
Gold prices faded $15.20 to $1,275.50 U.S. an ounce.
