Canada's main stock index advanced on Wednesday as positive U.S. economic data strengthened hopes for a solid recovery and higher commodity prices helped drive up shares of natural resource producers.
The S&P/TSX composite index jumped 131.25 points to greet noon at 14,751.32
The Canadian dollar moved up 0.36 cents to 88.02 cents U.S.
Investors also digested news that Royal Bank of Canada reported stronger quarterly profit, with gains at its core personal and commercial banking and wealth management businesses offsetting weakness at its capital markets arm. The stock was up slightly.
Shares of energy producers jumped with the price of U.S. crude oil gaining. Suncor Energy added 3.2% to $37.76 and had the biggest positive influence on the market. Canadian Natural Resources climbed 1.8% to $39.88.
The gold-mining sector rose, reflecting strength in the bullion price. Barrick Gold advanced 3.3% to $14.03, and Goldcorp was up 2.2% at $23.77.
On the economic front, a monthly gauge of the Canadian manufacturing sector held steady at a 12-month high in November. The RBC Canadian PMI remained at 55.3 last month, matching a high point set in November last year and again in October. A measure above 50 indicates the manufacturing sector is expanding.
Bank of Canada Governor Stephen Poloz is keeping the trend-setting interest rate at one per cent, even as Canada's recent economic performance has the look of a "broadening recovery."
In its interest-rate announcement Wednesday, the central bank cautioned that improvements to Canada's economic health have been offset by risks such as sliding oil prices and high household debt.
ON BAYSTREET
The TSX Venture Exchange gained 4.16 points to 724.43
All but three of the 14 Toronto subgroups were higher, with gold leading the way, up 3.4%, materials better by 2.7%, and energy ahead 2.2%.
The three laggards were consumer staples, down 1%, utilities, off 0.9%, and health-care, 0.3% less hale.
ON WALLSTREET
U.S. stocks traded slightly higher amid data reports that continued to show a slowly improving economy.
The Dow Jones Industrials gained 7.25 points to greet noon ET Wednesday at 17,886.80, with General Electric leading gains, while Coca-Cola was the greatest of 16 blue-chip decliners.
The S&P 500 added 3.68 points to 2,070.23. The NASDAQ index gained 9.55 points to 4,765.36
The energy sector rose about 1% to lead gains on the S&P 500, helped by stabilization in oil prices and a report that showed a drop in oil supply for the last week.
Abercrombie & Fitch reported a disappointing quarter before Wall Street opened, while Aeropostale is expected to post results after the bell.
The ISM services index beat expectations with a leap to a three-month high of 59.3 for November.
Before the open, ADP report on private payrolls showed sector employment is keeping up its recent pace in November, although the 208,000 new jobs was a shade below expectations.
Other data for Wednesday the Federal Reserve's Beige Book report on the economy.
Prices for 10-year U.S. Treasuries sank, raising yields to 2.30% from Tuesday’s 2.28%. Treasury prices and yields move in opposite directions.
Oil prices took on 22 cents to $67.10 U.S.
Gold prices gained $10.40 at $1,209.80 U.S.
