Markets in Toronto rose on Thursday, buoyed by a rally in resource stocks as a rebound in oil prices and an upbeat assessment of the U.S. economy by the Federal Reserve pushed investors back toward riskier assets.
The S&P/TSX composite index was off its highs of the morning, but was still positive 50.35 points to greet noon at 14,264.23
If the rise is sustained, it would be the third straight day of gains for the index, which has suffered in recent weeks as a diving oil price has hurt Canadian-listed oil companies.
The Canadian dollar gained 0.32 cents to 86.26 cents U.S.,
Among oil and gas shares, Canadian Oil Sands jumped 11.4% to $10.82, Cenovus Energy Inc gained 4.9% to $22.94, and MEG Energy Corp rose 10.2%to $18.24.
That trio is among producers that have scaled back 2015 spending plans or reduced dividends in response to tumbling oil prices.
Shares in convenience store operator Alimentation Couche-Tard Inc surged 7% to $45.60 after it said it would buy smaller U.S. rival Pantry Inc for about $861 million to boost its presence in the southeastern and Gulf Coast regions of the United States.
Telecom stocks were notably absent from the rally, with investors cautious on the sector ahead of a federal government wireless-industry policy announcement later in the day.
Telus Corp slipped 0.9% to $42.25 and Rogers Communications Inc was off 1% at $44.44.
In the economic docket, Statistics Canada reported that those of us drawing regular Employment Insurance benefits in October totaled 491,400, fairly stationary from the previous month.
Compared with October 2013, the number of EI beneficiaries decreased 26,800 or 5.2%.
ON BAYSTREET
The TSX Venture Exchange gained 6.51 points to 665.51
All but two of the 14 Toronto subgroups remained higher, as consumer staples went north 2%, gold 1.9%, and energy 0.8%.
The two laggards were telecoms, down 0.9%, and industrials, off 0.2%.
ON WALLSTREET
U.S. stocks surged on Thursday, extending Wall Street's best day of the year, after the Federal Reserve said it would be patient in increasing interest rates.
The Dow Jones Industrials gained 269.81 points, or 1.6%, to 17,626.68, with Microsoft leading blue-chip gains that included 29 of 30 components.
The S&P 500 hiked 30.81 points, or 1.5%, to 2,043.70, with industrials leading gains and energy turning lower to be the only laggard of its 10 major sectors.
The NASDAQ index tacked on 73.58 points, or 1.6%, to 4,717.58.
Hertz Global Holdings jumped after investor Carl Icahn reported hiking his stake in the car-rental company.
Thursday data had jobless claims falling by 6,000 to 289,000 last week, the lowest since early November. Moreover, the Conference Board's index of leading indicators advanced in November for a third consecutive month, signaling the U.S. economy is picking up steam heading into the New Year.
Prices for 10-year U.S. Treasuries sagged, raising yields to 2.21% from Wednesday’s 2.15%. Treasury prices and yields move in opposite directions.
Oil prices ditched $1.42 per barrel to $55.05 U.S.
Gold prices were positive $1.40 an ounce at $1,195.90 U.S.
