Equities in Canada’s largest market rallied more than 1% on Wednesday as higher-than-expected domestic growth data provided a healthy boost to sentiment and as Valeant Pharmaceuticals International shares rebounded after being battered by charges of price gouging.
The S&P/TSX composite index raced ahead 174.05 points, or 1.3%, to greet noon at 13,211.01
The Canadian dollar hiked 0.14 cents at 74.65 cents U.S.
The financials group, which makes up roughly a third of the index, climbed, as Toronto-Dominion Bank rose 2.1% to $52.53, and Royal Bank of Canada jumped 2.1% to $73.53.
A Reuters poll released on Wednesday showed that investors believed the index would post its first loss this year since 2011, hurt by concerns including China's growth and commodity prices.
Valeant, regularly a significant mover of the index, jumped 4.7% to $222.10 after tumbling more than 30% over the last week and a half. Drug makers like Valeant have come under fire in recent days over accusations of overcharging for their products.
Hudson's Bay Co jumped 11.4% to $23.10 after the retailer raised its sales forecast following the closing of its acquisition of German department store chain Galeria Kaufhof.
On the economic calendar, the economy grew in July. Statistics Canada says Gross Domestic Product picked up 0.3% during the month, after rising in June 0.4%, thus ending a five-month losing streak.
The nation’s number-crunchers attribute the increase in July to mining, quarrying, and oil and gas extraction, manufacturing, and the finance and insurance sector.
The figures supported the idea that any recession in the first half of the year was short-lived.
ON BAYSTREET
The TSX Venture Exchange slid 0.18 points to 523.45
All but one of the 13 TSX subgroups were higher midday, with health-care surging 3.9%, metals and mining mightier by 2.7%, and consumer discretionary issues better 1.9%.
Telecoms suffered 0.3%, the only losing group.
ON WALLSTREET
U.S. stocks jumped Wednesday, following a rally in global markets in an attempt to ease the pain of the worst quarter in four years.
The Dow Jones industrial average remained 116.38 points -- off its highs of the morning -- to 16,165.51, with Chevron leading advancers and Procter & Gamble and 3M the only decliners.
The S&P 500 gained 19.22 points, or 1%, to 1,903.31, with consumer discretionary leading all 10 sectors higher.
The NASDAQ index zoomed 62.29 points, or 1.4%, to 4,579.61, Apple gained 1%.
Wednesday is the last day of September and the final day of the third quarter, the worst since 2011 according to Barclays. The major U.S. averages are on track for a quarterly loss of more than 7%.
U.S. Federal Reserve Chair Janet Yellen is expected to give the opening remarks at a Community Banking Research and Policy Conference at 3 p.m. ET in St. Louis, Missouri. Last week the Fed chief suggested that the central bank was still likely to lift interest rates before year-end.
Ahead of Friday's key non-farm payrolls data, the September ADP Employment report showed private companies added 200,000 jobs.
The September Chicago purchasing managers’ index came in at 48.7, below expectations of 53.0.
Prices for 10-year U.S. Treasuries gained back lost ground, lowering yields back to Tuesday’s 2.06%. Treasury prices and yields move in opposite directions.
Oil prices gained 22 cents a barrel to $45.45 U.S.
Gold prices slipped $12.26 to $1,115.17 U.S. an ounce.
