Equity markets in Toronto rose on Friday on market optimism that the recent turmoil over the Greek debt crisis and China's stock market dive has calmed down.
Toronto’s S&P/TSX composite index jumped 135.09 points, or nearly 1%, to move into noon hour at 14,413.58
The Canadian dollar dropped 0.14 cents at 78.55 cents U.S.
Valeant Pharmaceuticals International, always influential in index moves, rose 2.5% to $290.56, to lead the gainers, while financial names filled the rest of the top five biggest index boosters.
Royal Bank of Canada advanced 1.2% to $76.38, followed by Toronto-Dominion Bank, which added 1.1% to $52.39.
Some of the biggest drags on the TSX were oil and gas-related names, with Crescent Point Energy topping the list. Its shares fell 2.8% to $24.30.
The mining-heavy materials group also dragged on the sector as Goldcorp was off 1.5% at $20.87, while Agnico was down 2.1% at $35.58.
Investors were hopeful that last-minute concessions by debt-laden Greece could result in a deal with its global creditors. In China, stocks, which had been plunging on panic selling, found some stable ground after support measures from Beijing appeared to be working.
On the economic beat, Statistics Canada reported this morning that employment was down 6,400 in June, as gains in full-time work were offset by losses in part-time. The unemployment rate held steady at 6.8% for the fifth consecutive month.
Following gains of 63,000, or 0.4%, in the first quarter of 2015, employment grew by 33,000 (+0.2%) in the second quarter. Full-time work increased by 143,000 in the second quarter, while part-time work declined by 110,000 over the same period.
ON BAYSTREET
The TSX Venture Exchange remained positive 3.81 points to 640.52
All but two of the 14 TSX subgroups were higher by noon, with global base metals, up 1.6%, health-care, up 1.4%, and financials ahead 1.2%.
The two laggards were gold and energy, down 0.4% each.
ON WALLSTREET
U.S. stocks surged on Friday as a second day of recovery in Chinese stocks and hopes of a resolution in Greece boosted investor sentiment.
The Dow Jones industrial average screamed higher 228.65 points, or 1.3%, to 17,777.27, with Apple leading all blue chips higher.
The S&P 500 picked up 23.83 points, or 1.3%, to 2,075.14, with telecommunications leading all sectors higher.
The NASDAQ index gained 67.69 points, or 1.4%, to 4,990.09. Apple jumped more than 2.5%, reversing a 2% plunge Thursday that took the stock close to its 200-day moving average.
Gap reported a 1% drop in June same-store sales, more than the Thomson Reuters estimate for a 0.5% decline.
Barracuda Networks beat estimates by one cent with adjusted quarterly profit of nine cents per share, with revenue also above estimates. However, gross billings—a sign of future demand—were well below Street forecasts.
In economic reports, U.S. wholesale trade inventories for May jumped 0.8%, soundly topping estimates for the fastest pace of growth in six months. April's figure was unchanged, showing a 0.4% gain.
There are no major earnings due on Friday.
Traders will also listen to Fed Chair Janet Yellen's midday speech for signals on when the central bank might raise rates, especially given the recent developments in Greece and China.
Greece submitted new reform proposals late Thursday that creditors could evaluate as early as Friday. The parliament in Athens is also scheduled to vote on the proposals later in the day.
Chinese stocks extended gains on Friday, jumping for a second day following government intervention amid hopes of a Greece deal.
Prices for 10-year U.S. Treasuries dipped, raising yields to 2.38% from Thursday’s 2.30%. Treasury prices and yields move in opposite directions.
Oil prices erased 52 cents a barrel to $52.26 U.S.
Gold prices added 60 cents at $1,159.80 U.S. an ounce.
