The Toronto stock market bolted out of the gate Wednesday amid anxiety over the U.S. Federal Reserve has to say about cutting back on its asset purchases.
The S&P/TSX composite index moved higher by 82.96 points to begin trading at 13,263.12
The Canadian dollar dipped 0.37 cents to 93.91 cents U.S.
Gains on the Toronto market were led by a gain in the tech sector.
On the corporate front, a federal-review-panel report on Enbridge’s proposed Northern Gateway pipeline, which would link the Alberta oil sands with a tanker port on the B.C. coast will be released Thursday following more than a year of hearings.
The highly-anticipated report on the controversial project will include the panel’s recommendations for the project but the final decision on whether the pipeline can go ahead rests with the federal government. Enbridge shares gained 53 cents to $44.48.
Imperial Oil Ltd. has applied for regulatory approval to build a new oilsands project northeast of Fort McMurray, Alta., which would cost an estimated $7 billion. Imperial expects to build its Aspen project in three, 45,000-barrel-per-day phases. The first phase of Imperial’s $12.9-billion Kearl oilsands mine north of Fort McMurray started up earlier this year. Imperial Oil took on 12 cents to $45.49.
Barrick Gold Corp. said that former American Airlines chief executive Donald Carty and Signalta Capital president Robert Franklin have resigned from the company’s board of directors. Barrick has been working to revamp and improve its corporate governance.
Earlier this month, Barrick announced that founder and co-chairman Peter Munk would retire and that two other long-time directors, Howard Beck and former Prime Minister Brian Mulroney, would not stand for re-election. Barrick shares gave back 11 cents to $18.12.
BlackBerry Ltd. has appointed a 20-year veteran of the mobile telecommunications industry as president of its Global Enterprise Services as the struggling smartphone company focuses on its business customers.
John Sims is joining BlackBerry in January from SAP, where he served as president of the business software company’s mobile services business. BlackBerry inched forward three cents to $6.51.
On the economic calendar, Statistics Canada reported this morning that October’s wholesale trade strengthened 1.4% to $50.5 billion, compared to a market call for a 0.3% improvement, after two straight months of sub-par growth.
Higher sales were reported in five of seven sub-sectors, representing over 70% of wholesale sales.
ON BAYSTREET
The TSX Venture Exchange moved higher 1.96 points to 888.03
All 14 TSX subgroups prospered in the first hour of trading, led by health-care, global base metals and telecoms, each up 0.9%.
ON WALLSTREET
The U.S. Federal Reserve is wrapping up its final policy meeting of the year and investors are split over whether the central bank will announce plans to scale back, or taper, its $85-billion-U.S.-per-month bond buying program.
The Dow Jones Industrials gained 57.72 points to 15,932.98
The S&P 500 index regained 2.50 points to 1,783.50. The NASDAQ slid 4.75 points to 4,018.81
Ford shares fell after the automaker said it expects profits in North America to be lower next year as it rolls out new models in the United States. General Motors shares were also lower.
General Mills shares were slightly lower after reporting earnings that missed forecasts, and FedEx shares also dipped after delivering an earnings update. Oracle is set to report results after the market close.
Shares of movie theater chain AMC rose nearly 9% in early trading after the company raised $331 million U.S. from its initial public offering late Tuesday.
This could be a very volatile day for the markets as investors wait for the Fed's announcement at 2 p.m. ET and press conference featuring Fed chair Ben Bernanke at 2:30.
The Fed has been buying bonds since 2008 and many investors say the liquidity boost has been the main driver of the bull market in stocks since 2009.
But as the economy improves, the Fed has been preparing the market for a gradual reduction in the program, known as quantitative easing. Bernanke sent shock waves through global markets in May when he first raised the prospect of tapering.
There's little consensus on when the Fed will begin tapering, although most agree that it will happen sooner rather than later. Some are expecting the rollback to begin this year, while others are convinced it will be pushed out to 2014.
In economic news, the U.S. Commerce Department said the number of new homes breaking ground soared nearly 23% in November from the month prior. But applications for building permits, a leading indicator for new home construction, fell 3% in the month.
Prices for 10-year U.S. Treasuries sagged, raising yields to 2.88% from Tuesday’s 2.84%. Treasury prices and yields move in opposite directions.
Oil prices bolted 69 cents to $97.91 U.S. a barrel.
Gold prices added 80 cents to $1,230.90 U.S. an ounce.
