Canadian stocks rose on Wednesday, rebounding from the biggest two-day decline since September, as oil producers climbed with prices jumping the most in eight weeks after U.S. inventories fell.
The S&P/TSX composite index soared 163.56 points, or 1.2%, to end the session Wednesday at 13,863.16.
The benchmark Canadian equity gauge fell 1.8% over the previous two days. The index is up 3.9% in October, on pace for the biggest monthly increase in two years.
The Canadian dollar gained 0.39 cents at 75.78 cents U.S.
Goldcorp lost 3.3% to $19.28, and Eldorado Gold Corp. tumbled 4.2% to $5.08, as gold producers sank, reversing earlier gains.
The prospect of an interest- rate increase from the Fed dimmed during the month amid slowing global economic growth and mixed U.S. data. Gold becomes a less attractive investment when rates rise as the metal doesn’t pay interest.
Canadian industrial stocks rallied, as Canadian National Railway Co. climbed 2.9% to $81.79. Canadian National reported third-quarter earnings after the market close Tuesday, including revenue of $3.22 billion, ahead of estimates for $3.15 billion.
Bombardier Inc. soared 11% to $1.61, after reports Quebec’s government will provide financial assistance to the embattled maker of the CSeries jetliner. The Wall Street Journal separately reported Bombardier had recently approached the federal government for about $350 million in short-term financing, citing an unidentified person with knowledge of the matter.
Energy producers advanced, as Crescent Point Energy Corp. added 3.5% to $18.09, and Canadian Natural Resources Ltd. rose 3.7% to $30.65.
ON BAYSTREET
The TSX Venture Exchange gained 3.67 points to 546.15
Nine of the 13 TSX subgroups were positive on the day, as health-care proved 3.6% haler, energy gushed 2.5%, and industrials moved up 1.4%.
The four laggards were weighed most by gold, which took a 1.6% turn for the worse, materials, down 0.9%, and the metals and mining group, sinking 0.7%.
ON WALLSTREET
U.S. stocks closed up more than 1% Wednesday after the October Federal Reserve statement gave investors more confidence in the possibility of a December rate hike.
The Dow Jones industrial average jumped 198.09 points, or 1.1%, to 17,779.52, with Apple leading gainers and Procter & Gamble the greatest laggard.
The S&P 500 progressed 21.12 points, or 1%, to 2,087.01, with financials jumping 2% to lead advancers in the S&P 500.
The NASDAQ index hiked 57.07 points, or 1.1%, to 5,087.22
Goldman Sachs and Apple contributed the most to gains. Procter & Gamble weighed the most on the index in the close.
Earnings season continues with PayPal, Yelp and Western Digital among those due to report after the close.
After the close Tuesday, Apple reported quarterly profit of $1.96 U.S. per share, eight cents above estimates, with revenue slightly above forecasts. The company sold more than 48 million iPhones during the quarter and nearly doubled its China sales, but it did issue conservative current quarter revenue guidance.
In other corporate news, Hyatt Hotels is in talks to buy Starwood Hotels & Resorts in a deal that is said to be as little as a week away.
On Tuesday, shares of Starwood jumped on news at least three Chinese firms are competing to win government approval for a bid on the hotel operator.
Activist investor Carl Icahn on Wednesday disclosed a large stake in AIG and called for the company to break itself up.
The Federal Reserve kept interest rates unchanged in its statement released at the conclusion of its two-day meeting.
Elsewhere, on the economic blotter, the U.S. advance September goods trade deficit was $58.63 billion.
Prices for 10-year U.S. Treasuries sank, raising yields to 2.10% from Tuesday’s 2.04%. Treasury prices and yields move in opposite directions.
Oil prices gained $2.76 a barrel to $45.96 U.S.
Gold prices slid $11.53 to $1,155.35 U.S. an ounce.
