Stocks in Toronto jumped more than 1% before paring some gains shortly after the open, tracking global markets staging a comeback amid worries over growth in China.
The S&P/TSX composite index gained 48.59 points to 13,199.52
Royal Bank of Canada reported a higher third-quarter profit as strength in personal and commercial banking offset a decline in its capital markets division. Net income for was $2.48 billion, or $1.66 per share, compared with $2.38 billion, or $1.59 per share, in the third quarter of 2014. Analysts on average had expected earnings of $1.67 a share.
Canada’s largest bank sold its shares for $71.74, or 62 cents cheaper than they closed on Tuesday.
National Bank Financial cut the target price on Bank of Montreal to $76.00 from $80.00 with rating sector perform. National also reports third-quarter earnings today, expecting $1.19 a share.
National shares galloped 62 cents, or 1.5%, to $42.18.
FLYHT Aerospace Solutions reports second-quarter earnings, expecting one cent per share.
FLYHT shares were grounded at 18 cents each.
ON BAYSTREET
The TSX Venture Exchange added 4.16 points to 530.70
Eight of the 14 TSX subgroups were positive, led by financials, up 1.2%, telecoms up 0.6%, and health-care haler by 0.5%.
The half-dozen laggards were weighed by gold, slumping 4%, materials, down 2.4%, and metals and mining off 2.3%.
ON WALLSTREET
U.S. stocks jumped in the open on Wednesday, attempting for a second day to bounce from a recent plunge, as investors eyed stimulus moves out of China and U.S. data.
The Dow Jones industrial average regained 306.33 points, or 2%, to open Wednesday at 15,972.77, trying desperately to shake out of its tailspin. Merck led all blue chips higher.
The S&P 500 regained 34.26 points, or 1.8%, to 1,901.87, with information technology leading all 10 sectors higher.
The NASDAQ index recovered 91 points, or 2%, to 4,597.48.
Stocks bounced nearly 3% or more in early trade Tuesday but failed to hold gains, with the Dow and S&P closing more than 1 percent lower and the NASDAQ also in the red.
In the last week-and-a-half, the S&P 500 has lost nearly $2 trillion U.S. in market capitalization, with $900 billion U.S. lost in this week's two trading sessions alone.
On the data front in the U.S., durable good orders for July rose 2.2%, above the expected 0.1% rise, but down from the 3.4% gain last month.
The services PMI is due later in the morning. New York Federal Reserve President William Dudley will speak this morning on the regional economy.
Overnight, China's central bank said it had injected 140 billion yuan ($21.8 billion U.S) into the interbank money market via short-term liquidity operations. However, China's benchmark Shanghai Composite finished down 1.3% after fluctuating throughout the day.
The Peoples' Bank of China fired a double-barreled easing shot on Tuesday—lowering interest rates and the reserve requirement ratio by 25 basis points and 50 basis points respectively—but this was not enough to reassure markets of slowing growth fears.
Prices for 10-year U.S. Treasuries dropped sharply, raising yields to 2.14% from Tuesday’s 2.08%. Treasury prices and yields move in opposite directions.
Oil prices inched lower three cents a barrel to $39.28 U.S.
Gold prices dropped $16.30 to $1,122.00 U.S. an ounce.
