The Toronto stock market took off like a rocket Friday after the Bank of Japan unexpectedly expanded a key stimulus program aimed at boosting the world's third-largest economy.
The S&P/TSX composite index leaped 111.89 points to pause for lunch at 14,570.58
The Canadian dollar dropped 0.77 cents to 88.62 cents U.S.
A decline the price of gold, and earnings misses by some of the big miners, have pounded the Toronto gold sector over the last few days -- it's down 12% this week alone.
December crude fell but December copper partially reversed Thursday's four-cent decline and moved up two cents to $3.08 U.S. a pound.
It was quiet on the corporate front following a heavy slate of earnings news this week.
TransForce Inc., one of Canada's largest trucking and logistics groups, says it has received sufficient shareholder support for a $495-million cash takeover offer for the Ontario-based Contrans trucking group but continues to await a response from Canadian competition authorities.
The Montreal-based company says it has been in discussions with the Competition Bureau and expects the 30-day waiting period will expire on Wednesday. As a result, TransForce has extended the offer deadline to Nov. 11.
The Bank of Japan's board voted five to four to accelerate purchases of Japanese government bonds, increasing its holdings at an annual pace of 80 trillion yen ($723.4 billion U.S.), while tripling its purchases of exchange-traded funds and real-estate investment trusts.
On the economic front, Statistics Canada reported this morning that August’s gross domestic product declined 0.1% in August, following no growth in July and increases in the first six months of the year.
The agency blames oil and gas extraction and manufacturing for much of the August decrease.
Thursday, Prime Minister Stephen Harper unveiled $26.76 billion in family tax cuts and benefits over six years, which will start flowing to voters over the coming year as the country gears up for an election next October.
ON BAYSTREET
The TSX Venture Exchange slumped 10.39 points to 761.20
All but three of the 14 Toronto subgroups were higher midday, led by information technology, soaring 2.7%, while health-care and consumer staples each popped 1.6%.
The three laggards were gold, sliding 3.7%, materials, down 0.9%, and utilities, off 0.5%.
ON WALLSTREET
U.S. stocks surged on Friday, lifting the Dow industrials and S&P 500 above their record closes, after the Bank of Japan unexpectedly expanded stimulus, increasing hopes for the global economy.
The Dow Jones Industrials hiked 158.97 points to 17,355.29, a fresh new intraday record.
The S&P 500 gained 17.75 points to 2,012.40. The NASDAQ index moved higher 54 points to 4,620.13.
LinkedIn gained after the online professional network reported third-quarter sales that beat expectations.
GoPro rose after its fourth-quarter profit outlook topped estimates
Citigroup gained after reporting a $600 million U.S. legal hit; Starbucks dropped after the coffee retailer tallied quarterly revenue that disappointed, and Exxon Mobil rose after reporting a 3% increase in quarterly profit.
Equities offered muted reaction to Friday data that had U.S. consumer spending unexpectedly falling in September, a gauge of manufacturing activity in the Chicago region hitting 66.2 in October, better than the estimated 60.0, and U.S. consumer sentiment rising to 86.9 in October versus an expected 86.4.
Prices for 10-year U.S. Treasuries dipped, raising yields to 2.34% from Thursday’s 2.30%. Treasury prices and yields move in opposite directions.
Oil prices lowered 97 cents to $80.15 U.S. a barrel.
Gold prices tumbled $34.20 to $1,164.30 U.S. an ounce.
