North American equity and commodity markets climbed dramatically Wednesday after the U.S. Federal Reserve announced that it has decided against reducing its stimulus because it thinks the U.S. economy still needs the support.
The S&P/TSX composite index grew 97.29 points to close Wednesday at 12,931.40
The Canadian dollar spiked 0.72 cents to 97.83 cents U.S.
On the corporate front, smartphone maker BlackBerry announced that a new phone will hit the markets in the coming weeks. The BlackBerry Z30 comes with a five-inch display, which means it's about the same size as its competitor, the Samsung Galaxy S4.
The Waterloo, Ont., company says the new phone will be available at a number of Canadian carriers, though specific dates haven't been announced.
BlackBerry has been in the midst of major changes with its organization and has a committee considering strategic alternatives, which could include the sale of the company. Its shares fell 2.1%, or 23 cents, to $10.65
Wi-LAN Inc. said HTC Corp. has agreed to sign a deal for a multi-year licence for patents for mobile handsets and tablets sold in the United States. The deal settles five pending lawsuits between the companies. Wi-LAN shares were up 10.9%, or 41 cents, at $4.16.
The news that the Fed will continue to pump stimulus money into Treasurys and mortgage bonds also lifted the gold sector higher after it was the leading decliner on the TSX for most of the day. The sector climbed, as Barrick Gold Corp. saw its shares gain 10.1%, or $1.91, to $20.78. Kinross Gold skyrocketed 48 cents, or 8.9%, to $5.90
The energy sector added strength as Imperial Oil took on 33 cents to $44,97, and Suncor grew 46 cents to $37.44. The metals and mining sector was up, while December copper was ahead nine cents to $3.31 U.S. a pound. Teck Resources leaped $1.05, or 3.7%, to $29.58
The health-care sector lost some of its momentum, as Catamaran Corporation collapsed $6.22, or 10.9%, to $50.86.
Meanwhile, Bank of Canada Governor Stephen Poloz said in a speech Wednesday that the Canadian economy is approaching a tipping point amid improved confidence among businesses and signs of stronger foreign demand.
However, Poloz added that Canada should be able to support stronger growth without stoking inflation -- the key factor on the central bank's interest rate decisions.
The Bank of Canada has maintained its influential overnight interest rate at 1% since September 2010, although it has indicated that the rate will go up at some time.
ON BAYSTREET
The TSX Venture Exchange rocketed 17.17 points to 952.59
All but four of the 14 Toronto subgroups were higher, led by gold, up 8.3%, materials, progressing 5.2%, and the metals and mining group, up 3.1%.
The four laggards were held down by health-care, down 2.5%, information technology, sliding 0.5%, and financials, down 0.1%.
ON WALLSTREET
The U.S. Federal Reserve is NOT going to slow down the pace of its bond purchases yet. And that was just what investors wanted to hear.
The S&P 500 immediately jumped to a new record high, and the Dow Jones Industrials quickly followed. The NASDAQ also moved up after the Fed's surprise announcement.
The Dow hiked 147.21 points, or nearly 1%, to close a turbulent Wednesday at 15,676.90
The S&P 500 index added 19.09 points to 1,723.85. The NASDAQ soared 37.94 points to 3,783.64.
FedEx reported an increase in quarterly sales and net income, compared to a year-ago. Earnings topped forecasts and shares rose on the news.
Despite a relatively rosy quarter, FedEx, which is often viewed as an economic bellwether because of its global footprint, gave investors an uncertain assessment on the economy.
While the stock popped on earnings, some traders were wary of FedEx's longer-term trajectory.
Soccer club Manchester United reported a jump in quarterly revenue, compared to the prior year, and a surge in net profit, compared to the year-earlier loss. The stock was up modestly.
Adobe Systems shares hit all-time highs after the software maker reported strong subscription growth for its "Creative Cloud" service on Tuesday.
Investors received one disappointing reading on the health of the economy before the Fed meeting though. The U.S. Census Bureau's monthly reports on housing starts and building permits came in below expectations.
Prices for the 10-year U.S. Treasury rose sharply, lowering yields to 2.71% from Tuesday’s 2.85%. Treasury prices and yields move in opposite directions.
Oil prices gained $2.74 to $108.16 U.S. a barrel.
Gold prices spiked $48.10 at $1,357.50 U.S. an ounce.
