Markets in Toronto shot up on Wednesday after bullish economic data from China boosted investor sentiment and helped drive gains in every major sector.
The S&P/TSX composite index greeted noon up 129.05 points to 14,438.38
The Canadian dollar dropped 0.38 cents at 90.72 cents U.S.
Data showed a 7.4% expansion in the Chinese economy in the first quarter. While the growth was at its slowest pace in 18 months, the fact that it managed to top market expectations was enough to cheer investors.
The Toronto market climbed for a third straight session and is up about 5.5% this year.
Financials rose as Toronto Dominion Bank climbed 0.5% to $51.47, and Bank of Nova Scotia advanced 0.4% to $64.90.
Shares of energy producers were up as Suncor added 0.9% to $39.74, and Canadian Natural Resources gained 0.8% to $44.12.
In corporate news, Metro Inc shares jumped 2.5% to $65.82, after the grocer reported a higher-than-expected quarterly profit and raised its dividend.
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 eked up 0.37 points to 992.47
All 14 Toronto subgroups were positive by noon hour ET, led by consumer staples and global base metals, each up 1.4%, and energy, up 1.3%.
ON WALLSTREET
Earnings, economic data, and China all helped boost markets on Wednesday.
The Dow Jones Industrial Average soared 129.05 points to pause for lunch at 16,391.61
The S&P 500 gained 14.45 points to 1,857.13, and the NASDAQ composite index spiked 40.97 to 4,075.13.
Earnings are the big story of the week. Yahoo surged 7% 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.
Companies like 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 U.S. 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 3%.
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.
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, boosting yields to 2.64% from Tuesday’s 2.63%. Treasury prices and yields move in opposite directions.
Oil prices dove 48 cents to $103.27 U.S. a barrel.
Gold prices gained 40 cents to $1,300.70 U.S. an ounce.
