Canada's main stock index rose on Wednesday after the Bank of Canada cut interest rates, helping boost shares of financial companies and energy producers.
The S&P/TSX composite index slipped 53.13 points, to greet noon at 14,546.27
The Canadian dollar fell backward 0.42 at 78.13 cents U.S.
Financials gained as Toronto Dominion Bank advanced 0.2% to $52.24, and Sun Life Financial Inc climbed 0.2% to $42.45.
Shares of energy producers added 0.3%. Suncor Energy was up 0.6% at $35.27, and Enbridge Inc climbed 1.1% to $58.83.
On the economic front, the Bank of Canada cut its key interest rate by a quarter percentage point to 0.5%, saying an unexpected economic contraction throughout the first half of the year had added to excess capacity and put downward pressure on inflation.
Elsewhere, Statistics Canada came out with its monthly survey of manufacturing, which revealed that sales edged up 0.1% in May, while constant dollar sales fell 0.5%, indicating a lower volume of goods sold..
Meanwhile, the Canadian Real Estate Association said sales activity was down 0.8% last month from May, but noted that sales levels in May and June were at the strongest level in more than five years.
Actual sales for June, not seasonally-adjusted, surged 11% from June 2014.
ON BAYSTREET
The TSX Venture Exchange added 0.22 points to 645.31
ON WALLSTREET
U.S. stocks traded mildly higher on Wednesday as investors digested data, earnings reports and the beginning of Fed Chair Janet Yellen's two-day testimony to Congress.
The Dow Jones industrial average inched up 13.16 points to 18,066.74, with Apple leading advancers and Boeing the greatest decliner.
The S&P 500 eked up 1.63 points to 2,110.58, with financials leading four sectors higher and telecommunications the greatest laggard.
The NASDAQ index added 8.86 points to 5,113.75. Apple briefly traded more than 1% higher.
In prepared remarks, Yellen said the central bank is on pace to raise rates this year if the economy evolves as expected. She said unemployment should decline but inflation remains below the Fed's target. Greece and China topped the list of uncertainties in Yellen's testimony.
Yellen appeared before the House Financial Services Committee to deliver her testimony on the economy. The following question-and-answer session focused more on political than fiscal issues.
The Fed's Beige Book is due at 2:00 p.m. ET. On Tuesday, June retail sales fell 0.3%, compared with analyst expectations for a rise.
U.S. June producer price data showed an increase of 0.4% in June, while the July Empire State Survey came in at 3.9, topping June's negative 2 read.
June industrial production showed an increase of 0.3%, with capacity utilization at 78.4%, up a touch from May.
Prices for 10-year U.S. Treasuries were higher, lowering yields to 2.36% from Tuesday’s 2.40%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.22 a barrel to $51.82 U.S.
Gold prices dipped $8.50 at $1,145.00 U.S. an ounce.
