Equity markets in Toronto enjoyed a higher open on Wednesday as better-than-expected economic growth in China reassured investors.
The S&P/TSX composite index started Wednesday’s session up 19.49 points to 14,303.92
The Canadian dollar dropped 0.28 cents at 90.83 cents U.S.
Metals and mining stocks showed the best early strength, led by Sherritt International, which climbed eight cents, or 1.7%, to $4.81.
The Bank of Nova Scotia’s international banking chief said his bank sees Mexico as its most promising growth territory and is not deterred by a money-laundering scandal there involving Citigroup's Banamex unit. Scotiabank shares gathered 22 cents to $64.85 soon after the opening.
TransAlta Corp said on Tuesday it has been selected as the preferred bidder to build a A$550-million ($510 million U.S.) natural-gas fired generating station in South Hedland, Western Australia. TransAlta shares picked up 3.5 cents to $13.13.
On the economic schedule, the Bank of Canada announced that it is maintaining its target for the overnight rate at 1%, or where it’s been for the last three and a half years.
Meantime, Statistics Canada reported that foreign investment in Canadian securities moved higher $6.1 billion in February, mostly corporate instruments. This was matched by Canadian acquisitions of foreign securities at $6.0 billion.
ON BAYSTREET
The TSX Venture Exchange slumped 3.91 points to 996.24
All but two of the 14 Toronto subgroups were higher in early trading, as metals and mining strengthened 1%, while global base metals and consumer staples each climbed 0.7%.
The two laggards were gold, down 0.2%, and health-care, off 0.1%.
ON WALLSTREET
Earnings, economic data, and China seemed to provide the mix for a good market start on Wednesday.
The Dow Jones Industrial Average soared 93.44 points to open Wednesday at 16,356
The S&P 500 gained 8.58 points to 1,851.56, and the NASDAQ composite index added 23.48 to 4,057.64.
All three major indexes are up for the week, although only the S&P 500 is positive for the year.
Earnings are the big story of the week. Yahoo surged 8% after the company posted earnings and sales Tuesday that came in slightly ahead of expectations.
But Bank of America shares declined Wednesday after reporting a quarterly loss stemming from its $6 billion U.S. in litigation expenses from a settlement with the Federal Housing Finance Agency. The settlement was related to the bank misrepresenting risky mortgage securities that contributed to the housing crisis.
Intel shares popped after the company reported earnings that beat analysts' estimates by a cent.
Big firms such as Google, IBM and American Express will report earnings after the bell.
Aside from earnings, Chinese Internet giant Weibo is expected to price its initial public offering after the closing bell on Wednesday. The social media powerhouse, sometimes referred to as China's Twitter, is expected to sell about $380 million in stock, putting its value at about $4 billion U.S. This is the latest in a string of IPOs in the U.S.
Twitter continues its roller coaster ride. The stock was up a whopping 11% yesterday after it announced it was acquiring data startup Gnip. That optimism might have been overplayed though as shares are down almost 4% in early trading today.
Shares of SodaStream spiked after an Israeli newspaper reported that the soda machine maker is in talks to sell a stake to a major soft-drink company.
Elsewhere, there was comforting news from China. The world's second largest economy grew at an annual rate of 7.4% in the first quarter. While China's economy continues to slow, the figure was slightly stronger than economists were expecting and seemed to mollify fears of a major halt in Asia.
On Wednesday, the U.S. government released housing data that showed new home construction rose from February, though it was down from a year ago. It was mixed news though because building permits, a gauge of future construction activity, fell in March.
Investors will also be watching the latest U.S. Federal Reserve developments Wednesday when Chief Janet Yellen speaks at the Economic Club of New York. As with most Fed events, investors will be looking for clues as to when the central bank plans to raise interest rates.
Prices for 10-year U.S. Treasuries sagged, hiking yields to 2.66% from Tuesday’s 2.63%. Treasury prices and yields move in opposite directions.
Oil prices marched up 88 cents to $104.63 U.S. a barrel.
Gold prices gained $1.50 to $1,301.50 U.S. an ounce.
