Canada’s main stock index surged more than 2% on Wednesday as Valeant Pharmaceuticals International Inc rebounded and higher-than-expected domestic growth data gave a range of sectors a healthy boost amid end-of-quarter positioning.
The S&P/TSX composite index hiked 174.05 points, or 1.3%, to close Wednesday at 13,306.96. The index fell 4% in September and 8.6% in the quarter.
The Canadian dollar gained 0.44 cents at 74.94 cents U.S.
Valeant, regularly a significant mover of the index, jumped $26.13, or 12.3%, to $238.19 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 $1.92, or 9.3%, to $22.65 after the retailer raised its sales forecast following the closing of its acquisition of German department store chain Galeria Kaufhof.
Among metals and mining stocks, First Quantum Minerals raced ahead 27 cents, or 5.8%, to $4.92, while Teck Resources spiked six cents, or nearly 1%, to $6.37.
Also climbing were utilities, most notably Algonquin Power & Utilities, ahead 29 cents, or 3.1%, to $9.46, while Canadian Utilities Limited advanced $1.20, or 3.4%, to $36.15.
The lone laggard was telecoms, as Rogers Communications faded 31 cents, or 0.7%, to $46.00.
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.
Canadian equities are among the worst-performing markets in the developed world this year with an 11% slide, led by declines among raw-materials and energy producers of at least 24%.
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 picked up 0.94 points to 524.57
All but one of the 13 TSX subgroups were higher on the day, with health-care surging 6.5%, utilities up 3.1%, and metals and mining mightier by 2.7%
Telecoms suffered 0.4%, the only losing group.
ON WALLSTREET
U.S. stocks closed higher by about 1.5% or more Wednesday, following a rally in global markets, but the major averages still posted the worst quarter in four years.
The Dow Jones industrial average screamed ahead 235.57 points, or 1.5%, to 16,284.70. Nike led gains, while Procter & Gamble was the greatest weight on the blue chip index.
The S&P 500 gained 35.84 points, or 1.9%, to 1,919.93, with consumer discretionary leading all 10 sectors higher. Utilities proved the only gainer for the quarter, while energy plunged 18.1% as the greatest decliner on the quarter.
The NASDAQ index climbed 101.7 points, or 2.3%, to 4,619.02, as Apple gained $1.24, or 1.1% to $110.30 U.S.
The major averages closed about 7% lower for the third quarter, their worst since 2011.
Developments in Washington could fall under the spotlight since the Federal Government runs out of money at midnight — unless Congress and the President approve a new budget or a continuing resolution.
The Senate approved legislation Wednesday to avoid a shutdown, while the House of Representatives was expected to vote on the bill later in the afternoon.
Failure to reach an agreement will result in a government shutdown Thursday.
U.S. Federal Reserve Chair Janet Yellen was expected to give the opening remarks at a Community Banking Research and Policy Conference this afternoon in St. Louis. 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 to 2.04% from Tuesday’s 2.06%. Treasury prices and yields move in opposite directions.
Oil prices gained 10 cents a barrel to $45.33 U.S.
Gold prices slipped $12.18 to $1,115.25 U.S. an ounce.
