Canada's main stock index opened higher on Thursday as solid U.S. economic data boosted sentiment and recent comments from the Federal Reserve signaled that the central bank was in no hurry to raise interest rates.
The S&P/TSX composite index leaped 202.10 point, or 1.4%, to open Thursday at 14,487.10.
The Canadian dollar dropped 0.05 cents to 84.59 cents U.S.
Health-care stocks proved the strongest of the gainers, as Valeant Pharmaceuticals jumped $12.18, or 7.1%, to $183.82.
Consumer discretionary issues also showed some spark, with Restaurant Brands International gathering $2.50, or 5.4%, to $49.00
On the economic beat, Statistics Canada reported this morning that its New Housing Price Index rose 0.1% in November. Provincially, gains in Alberta and Ontario were offset by a decline in British Columbia.
ON BAYSTREET
The TSX Venture Exchange gained 4.56 points to 688.21
All 14 Toronto subgroups were higher to begin the day, with health-care issues climbing 3.4%, consumer discretionaries up 1.6%, and information technology up 1.2%.
ON WALLSTREET
U.S. stocks surged on Thursday, extending the prior day's robust gains, as the price of oil steadied and on thinking the Federal Reserve and the European Central Bank would buttress the global economy.
The Dow Jones Industrials soared 234.82 points, or 1.3%, to 17,819.34, with all 30 of its components advancing.
The S&P 500 added 25.73 points to 2,051.63, with all 10 of its major industry groups rising.
The NASDAQ index moved skyward 63.30 points to 4,713.77.
Comments late Wednesday by Fed Bank of Chicago President Charles Evans helped the bullish slant, with Evans saying he did not believe the central bank should be in a rush to hike interest rates.
Costco Wholesale climbed in early New York trading after the warehouse retailer reported a better-than-expected increase in same-store sales last month.
Family Dollar Stores fell after the discount retailer reported quarterly earnings short of estimates, and J.C. Penney dropped after the retailer said it would close about 40 stores in the next year.
Data Thursday had jobless claims dropping by 4,000 to 294,000 last week, with the better-than-expected number coming a day before the payrolls report for December.
Prices for 10-year U.S. Treasuries stumbled, raising yields to 2.00% from Wednesday’s 1.95%. Treasury prices and yields move in opposite directions.
Oil prices slid 12 cents per barrel to $48.53 U.S.
Gold prices took on 80 cents an ounce at $1,211.50 U.S.
