Equity markets in Canada’s biggest centre rose on Wednesday, encouraged by the prospect of further stimulus out of Asia as Canada's central bank held rates steady.
The S&P/TSX composite index was off its highs of the morning, but still positive 35.48 points to greet noon Wednesday at 13,666.15
The Canadian dollar slid 0.10 cents to 75.60 cents U.S.
Four of the five most influential movers on the index were financial stocks, with Royal Bank of Canada rising 1% to $73.15, and Manulife Financial advancing 1.7% to $20.75.
On the downside, gold miners were among the heaviest weights, with Goldcorp off 2.7% to $17.06, and Barrick Gold declining 1.7% to $8.45.
On the economic front, the Bank of Canada announced this morning, as expected, it is keeping its target for the overnight rate at 0.5%. The Bank Rate is correspondingly 0.75% and the deposit rate is 0.25%
Moreover, Statistics Canada reported that building permits issued by municipalities edged down 0.6% to $7.7 billion in July, following a 15.5% increase in June.
Lower construction intentions in the non-residential sector, mainly in Ontario and Alberta, accounted for much of the decrease at the national level.
A report from Canada Mortgage and Housing Corporation revealed that housing starts showed the seasonally adjusted annualized rate of housing starts jumped to 216,924 in August from an upwardly revised 193,253 units in July. Forecasters had expected 190,000 starts.
ON BAYSTREET
The TSX Venture Exchange faded 1.43 points by midday to 555.19
All but four of the 14 TSX subgroups were higher, with metals and mining surging 1.5%, consumer discretionary stocks moving 1.2% better, and industrials improving 0.8%
The four laggards were weighed most by gold, down 2.1%, materials, sliding 0.8%, and energy, skidding 0.6%.
ON WALLSTREET
U.S. stocks attempted gains for a second consecutive day Wednesday, following a rally in global markets amid talk of stimulus overseas.
The Dow Jones industrial average held onto gains of 19.61 points to 16,512.29, with Goldman Sachs the greatest point driver.
Earlier, the Dow tried to join the S&P 500 and NASDAQ composite out of correction territory, less than 10% away from their 52-week highs.
The S&P 500 nicked ahead 0.55 points to 1,969.96, with materials leading seven sectors higher and health care the greatest decliner.
The NASDAQ index inched higher 1.82 points to 4,813.75. Apple fluctuated around the flatline ahead of its afternoon event, at which the company is expected to unveil new products.
Economically speaking, traders eyed the Job Openings and Labor Turnover Survey (JOLTS) which showed the number of job openings was 5.8 million, the U.S. Bureau of Labor Statistics said.
The key non-farm payrolls report Friday reinforced expectations that labor conditions are strong enough to support a rate hike, which could possibly come as soon as the Federal Reserve's meeting next week.
China's Ministry of Finance said the government will strengthen fiscal policy, boost infrastructure spending and speed up reform of its tax system, adding to other steps to re-energize sputtering growth.
Prices for 10-year U.S. Treasuries tumbled, upping yields to 2.23% from Tuesday’s 2.19%. Treasury prices and yields move in opposite directions.
Oil prices dropped 89 cents a barrel to $45.05 U.S.
Gold prices sank $12.10 to $1,108.90 U.S. an ounce.
