Equity markets in Canada’s largest centre shot higher shortly after Wednesday’s open led by a hefty gain in energy stocks and broad gains in most other key sectors.
The S&P/TSX composite index jumped 130.3 points, or 1%, to open Wednesday at 13,593.01
The Canadian dollar climbed 0.26 cents at 75.72 cents U.S.
CIBC cut the price target on Freehold Royalties to $13.00 from $14.25 in light of the weak commodity price environment and company’s dividend cut.
Freehold shares gained 27 cents, or 2.6%, to $10.77.
On matters macroeconomic, Statistics Canada reported this morning that offshore investors reduced their holdings of Canadian securities by $10.1 billion in July, mainly in equity instruments. At the same time, Canadian holdings of foreign securities edged down as sales of equity securities were almost completely offset by purchases of debt securities.
Moreover, the nation’s number crunchers reported that manufacturing sales rose 1.7% to $52.2 billion in July, on the backs of motor vehicle parts and motor vehicle assembly industries.
ON BAYSTREET
The TSX Venture Exchange gained 4.33 points to 548.43
All but one of the 14 TSX subgroups opened the session higher, as gold brightened 3.2%, energy took on 2.9%, and materials strengthened 2.3%.
Only health-care ailed, and 0.3% at that.
ON WALLSTREET
U.S. stocks traded narrowly mixed Wednesday as oil extended a recovery and the Federal Reserve was set to begin its two-day policy meeting.
The Dow Jones industrial average inched up 10.62 points to 16,610.47, with Procter & Gamble leading advancers and Apple the greatest laggard.
The S&P 500 inched up 0.79 points to 1,978.88, with energy leading nine sectors higher and telecommunications the only decliner.
The NASDAQ index settled 10.8 points to 4,849.72. Apple shares declined 0.5%
On the earnings front, FedEx reported quarterly profit of $2.42 per share, four cents below estimates, with revenue matching forecasts. CEO Fred Smith said the company is doing well considering weaker than expected global economic conditions. Separately, FedEx will increase rates by 4.9% at its FedEx Express service, effective Jan.4.
Oracle was upgraded to "buy" from "neutral" at SunTrust, which cites increasing opportunities for Oracle's cloud-based business as well as valuation. Oracle is scheduled to report quarterly numbers after the close.
Hewlett-Packard may also be in focus after the tech firm said on Tuesday that it expected to cut a further 25,000 to 30,000 jobs in its enterprise business.
The energy sector briefly rose more than 1.5% to lead S&P 500 advancers.
One of the last data points out ahead of the Fed meeting, August CPI, showed a decline of 0.1%, its first drop in seven months. The ex-food and energy figure rose 0.1%.
The September home builder sentiment rose one point to 62, the highest since 2005.
The Federal Open Market Committee could raise short-term interest rates for the first time in nine years at its two-day meeting scheduled to begin Wednesday. All eyes are on Thursday afternoon's expected statement and press conference.
Wall Street is divided over whether the central bank will decide to raise rates. In all, 49% of respondents to a survey a rate said they think a hike will come at the current meeting.
Prices for 10-year U.S. Treasuries were unchanged, leaving yields at Tuesday’s 2.28%.
Oil prices took on $1.18 a barrel to $45.77 U.S.
Gold prices recouped $9.20 to $1,111.80 U.S. an ounce.
