Stocks in Canada’s biggest centre rose on Friday as materials stocks cheered a Chinese interest rate cut that boosted prices for base metals, and shares of embattled Valeant Pharmaceuticals International Inc also bounced.
The S&P/TSX composite index remained positive 72.16 points – off its highs of the morning -- to break for lunch at 13,950.27
The Canadian dollar plunged 0.44 cents at 75.94 cents U.S.
The index was on track for a 1.5% gain on the week.
The most influential gainer was Valeant, which rose 7.7% to $155.14 after the company said it would refute allegations it had artificially inflated its revenue.
The stock has tumbled from above $300 in recent weeks amid criticism of its drug price hikes and after a short-selling firm raised questions about its strategy and accounting practices.
The heavyweight financial sector climbed, with Royal Bank of Canada up 1.1% to $75.20 and Manulife Financial Corp advanced 1.6% to $22.43.
Materials stocks got a boost as copper and nickel jumped to one-week highs and other base metals also gained after top metals consumer China cut rates to boost its slowing economy.
The group was up, with First Quantum Minerals Ltd adding 1.3% to $7.58.
Among the heaviest weights was Suncor, which fell 1.3% to $37.62, and Canadian Natural Resources, off 1.5% to $30.70.
On the economic front, Statistics Canada reported that the consumer price index rose 1.0% in the 12 months to September, after increasing 1.3% in August. On a seasonally-adjusted monthly basis, the Consumer Price Index decreased 0.2% in September, after posting no change in August.
ON BAYSTREET
The TSX Venture Exchange was still ahead 1.42 points to 549.17
Eight of the 13 TSX subgroups were higher, as metals and mining rocketed 4.4%, health-care issues were 2.9% haler, and materials surged 1.9%.
The five laggards were weighed most by energy, off 1.2%, utilities, clicking 0.4% lower, and consumer staples, off 0.3%.
ON WALLSTREET
U.S. equities traded higher Friday after the Chinese central bank cut interest rates and after three tech giants posted better-than-expected earnings.
The Dow Jones industrial average climbed 86.49 points to 17,575.65, led higher by Microsoft and with Nike leading decliners.
The S&P 500 picked up 13.23 points to 2,065.76, with information technology leading seven sectors higher as utilities led decliners.
The NASDAQ index hiked 82.29 points, or 1.7%, to 5,002.34
The People's Bank of China cut interest rates for the sixth time since November to 4.35%, effective Oct. 24.
Investors also digested a new batch of earnings, including reports from tech giants Alphabet, Amazon and Microsoft, all of which beat analysts' expectations.
Alphabet beat estimates by 14 cents U.S., while Amazon posted earnings per share of 17 cents. Wall Street expected the Jeff Bezos-run company to report a loss of 13 cents U.S.
Microsoft posted a beat on both earnings and estimates and accounted for 32 points of the Dow's gains. It also hit its highest levels since March 2000.
Amazon, Facebook and Alphabet all hit all-time highs.
Other companies that have reported include Procter and Gamble and VF Corp.
Procter posted better-than-expected earnings per share, but fell short on revenue. VF Corp. missed analysts' expectations on both earnings and revenue.
In corporate news, TreeHouse Foods is in advanced talks to buy Ralcorp, a unit of ConAgra Foods, for up to $2.7 billion U.S.
Kellogg is in talks to buy Diamond Foods for $35 to $40 U.S. a share, The New York Post reported.
On the data front, investors took in the latest manufacturing Purchasing Managers’ Index data, which came in at 52, below the expected 52.8.
Prices for 10-year U.S. Treasuries staggered, raising yields to 2.08% from Thursday’s 2.02%. Treasury prices and yields move in opposite directions.
Oil prices slumped 77 cents a barrel to $44.61 U.S.
Gold prices slid $3.06 to $1,162.99 U.S. an ounce.
