The Toronto stock market soared more than 300 points Wednesday afternoon with sentiment helped along by reassurance on interest rates from the U.S. Federal Reserve.
The S&P/TSX composite index soared 352.36 points, or 2.5%, to end Wednesday at 14,213.88
The Canadian dollar demurred 0.09 cents to 85.92 cents U.S., as the greenback weakened after the Federal Reserve promised to be "patient" in determining when to raise its key interest rate. The Fed said that this "patient" approach is consistent with what it called its "previous" guidance that it expected to keep the rate near zero for a "considerable time."
Financials gained, with TD up 50 cents to $53.02. The sector had sold off on concerns about the impact of falling oil prices on the Canadian economy and the exposure of banks to high-cost producers that took on a lot of debt to finance expansion.
Leadership also came from industrials, as Bombardier triumphed 11 cents, or 2.8%, to $4.01
On Wednesday, Husky Energy Inc. says its 2015 capital budget will be $3.4 billion, about $1.7 billion less than it expects to spend this year on major projects. Its shares climbed $2.36, or 10.1%, to $25.72.
Penn West Petroleum Ltd. is cutting its dividend from 14 cents to three cents a share starting in April 2015. It is also reducing its 2015 capital budget to $625 million, which is $215 million or about 26% less than anticipated in Penn West's previous guidance issued Nov. 17.
Its stock has been a major casualty of the drop in the energy sector this fall, down 43% just in the past six weeks. But on Wednesday, it ran up 8.1%to $2.54.
A major gainer was Sherritt International, which charged ahead 59 cents or 26% to $2.86. Sherritt is a major investor in Cuba and its stock took off after President Barack Obama vowed "a new approach to Cuba."
He detailed steps to begin normalizing relations with Cuba, including establishing a U.S. embassy in Havana and lifting many restrictions on travel and money transfers.
The base metals group gained with March copper up one cent to $2.87 U.S. a pound. Teck Resources climbed $1.36, or 10.4%, to $14.40
The gold sector climbed as Barrick Gold jumped 4.5% to $12.56, and Goldcorp gained 4.4% to $12.55
In the economic docket, Statistics Canada reported that wholesale trade edged up 0.1% in October to $54.2 billion. The agency adds gains were recorded in five of seven sub-sectors, representing 68% of wholesale sales.
ON BAYSTREET
The TSX Venture Exchange raced ahead 16.73 points to 659.03
All 14 Toronto subgroups gained ground, as energy screamed higher 7.2%, metals and mining spiked 6.7%, and gold jumped 5.5%.
ON WALLSTREET
U.S. stocks surged on Wednesday, with the Dow marking its best session of the year, as investors celebrated a rally in the energy sector and the Federal Reserve's pledge to be patient in raising interest rates.
The Dow Jones Industrials gained 288 points,or 1.7%, to 17, 356.87, with Chevron leading gains that included all 30 components.
The S&P 500 hiked 40.15 points, or 2%, to 2,012.89, with energy pacing gains among its 10 major sectors, all of which advanced.
The NASDAQ index climbed 96.48 points, or 2.1%, to 4,644.31.
FedEx dropped after the shipper' posted disappointing second-quarter earnings; competitor United Parcel Service also fell.
The U.S. Labor Department reported the consumer price index fell 0.3% in November, the largest drop since 2008. Low inflation gives the Fed more rein to take its time in increasing rates.
Prices for 10-year U.S. Treasuries fell, raising yields to 2.15% from Tuesday’s 2.07%. Treasury prices and yields move in opposite directions.
Oil prices gained 30 cents per barrel to $56.23 U.S.
Gold prices dropped $6.10 an ounce at $1,188.20 U.S.
