Equity markets in Toronto rose midday Tuesday after comments from Russian President Vladimir Putin helped calm the market's fears about tensions in the region and investors eyed a U.S. Federal Reserve policy meeting for monetary policy direction.
The S&P/TSX composite index added 80.05 points to greet noon at 14,311.94
The Canadian dollar moved downward 0.19 cents at 90.22 cents U.S.
Putin signed a treaty to make Crimea part of Russia but said he did not plan to seize any other regions of Ukraine.
Financials strengthened as Manulife Financial climbed 1.1% to $21.06, and Bank of Nova Scotia rose 0.6% to $64.83.
Industrial shares jumped, helped by gains in Canada’s two biggest rail operators.
Canadian National Railway advanced 1.3% to $63.45, and Canadian Pacific Railway gained 2% to $174.50.
Shares of gold producers gave back ground, reflecting a similar fall in the price of bullion. Barrick Gold Corp dropped 2.2% to $22.12.
On the economic beat, a cheery sign from Statistics Canada, reporting that manufacturing sales rose 1.5% to $50.4 billion in January, their largest gain since last February.
Elsewhere, the Bank of Canada is redefining the role of its number-two policymaker, introducing changes that may attract a broader range of candidates to fill the job when the current second-in-command, Tiff Macklem, steps down later this year.
ON BAYSTREET
The TSX Venture Exchange gathered 1.83 points to 1,035.97
All but two of the 14 Toronto subgroups were higher midday, as health-care, consumer staples and industrial stocks each climbed 1%.
The two laggards were gold, down 1.4%, and materials, sliding 0.5%.
ON WALLSTREET
Stocks were higher for a second straight day Tuesday as tensions in Crimea seemed to fade and investors started to focus on what the U.S. Federal Reserve has planned.
The Dow Jones Industrial Average was in the green 90.73 points to pause for lunch at 16,317.25
The S&P 500 index gained 11.76 points to 1,870.59. The NASDAQ spiked 43.51 points to 4,323.46.
On the corporate front, shares of GameStop fell after Wal-Mart said it was getting into the used video game sales market.
Shares of Microsoft rose to a 52-week high on expectations that Microsoft may soon announce a version of its Office software for Apple's iPad.
Also, shares of Hertz rose after it announced earnings and said it would spin off its equipment rental business to pay off debt.
Two big software companies, Oracle and Adobe Systems will report earnings after the close.
The Fed's latest policy meeting wraps up on Wednesday afternoon. Janet Yellen, the new Fed chair, will give her first press conference after the meeting.
It is widely expected that Yellen will continue to trim, or taper, the fed's stimulus program by another $10 billion, to $55 billion U.S. a month. The markets will also listen closely to any possible changes to the Fed's guidance on interest rate changes.
The central bank will have two new pieces of data to look at as it continues its meeting.
Consumer prices edged up 0.1% in February. Food prices jumped 0.4% - the largest increase in nearly three years. But inflation is not a huge problem for the Fed or economy right now.
Meanwhile, there were mixed signs about housing. Construction of new homes fell by 0.2% in February, but building permits, a sign of future construction, rose 7.7%.
Prices for 10-year U.S. Treasuries inched up, lowering yields to 2.68% from Monday’s 2.70%. Treasury prices and yields move in opposite directions.
Oil prices advanced $1.10 to $99.18 U.S. a barrel.
Gold prices shed $15.90 to $1,357.00 U.S. an ounce.
