Stocks in Toronto bounced off their weakest close in two years on Wednesday, helped by a rebound in heavyweight resource and financial stocks as commodity prices caught a break from a bruising selloff.
The Toronto Stock Exchange's S&P/TSX composite index pared gains by noon but remained positive 52.4 points to 12,947.87, after plumbing depths Tuesday it had not seen since October 2013.
The Canadian dollar leaned lower 0.04 cents to 73.57 cents U.S.
The energy group climbed as strong Japanese data and a surprise drop in U.S. oil stockpiles boosted crude prices off of 2009 lows, while gains for copper and gold helped materials stocks rise.
Those two groups, which combined account for more than a quarter of the index's weight, have lost between 22% and 27% of their value this year.
Pipeline companies were among the most influential gainers on the day, with Enbridge up 3.4% to $43.30 and TransCanada Corp advancing 3% to $42.24.
Heavyweight producers also featured in the winning column, with Suncor Energy Inc adding 2.2% to $35.73 and Canadian Natural Resources gaining 1.9% to $29.17.
Financials climbed, with Toronto-Dominion Bank rising 2.1% to $54.25 and Bank of Nova Scotia up 1.3% to $58.22.
Gold miners were also among the gainers as spot gold rose, with Barrick Gold Corp advancing 4% to $10.64 and Goldcorp up 2.8% to $16.73.
First Quantum Minerals Ltd advanced 8% to $4.75. Copper prices advanced 1% to $4,632 U.S. a tonne.
ON BAYSTREET
The TSX Venture Exchange recouped 2.35 points to 508.69.
Seven of the 13 TSX subgroups were higher by noon, with metals and mining progressing 2.2%, gold up 0.8%, and materials ahead 0.6%.
The half-dozen laggards were weighed most by health-care, down 2.2%, while telecoms and consumer discretionaries each stepped back 1.2%.
ON WALLSTREET
U.S. stocks traded mostly lower Wednesday, shaking off an earlier boost from news of a potential merger, as investors eyed oil prices.
The Dow Jones industrial average clung to positive territory 15.97 points to 17,583.97, with DuPont the biggest gainer. Chevron and Exxon Mobil were also among the top advancers, boosted by gains in oil prices.
The S&P 500 dropped 5.74 points to 2,057.85. Energy briefly gained 3% and materials temporarily surged 4% to lead S&P 500 advancers.
The NASDAQ index sank 43.32 points to 5,054.92, as Apple fell more than 1% and biotech stocks declined
Shares of Dow Chemical and DuPont each jumped more than 10% on word the two chemical giants could merge as early as Thursday.
Pipeline operator Kinder Morgan late Tuesday cut its quarterly dividend to 12.5 cents U.S. a share, down sharply from the current 51 cents U.S. a quarter.
Copper and gold producer Freeport-McMoran said it will suspend its common stock dividend, further revise its oil and gas capital spending plans, and curtail copper production, after announcing in August it was cutting spending.
Yahoo confirmed Wednesday it will not spin off its stake in Alibaba. Shares of Yahoo turned lower in late-morning trade.
Oil turned lower after spiking around the U.S. Energy Information Administration report, which showed weekly crude inventories declined. The late Tuesday release of American Petroleum Institute data showed a surprise drawdown in supply, offering the market support amid an ongoing supply glut.
Prices for the 10-year Treasury sagged, boosting yields to 2.25% from Tuesday’s 2.22%. Treasury prices and yields move in opposite directions.
Oil prices turned lower 36 cents a barrel to $37.15 U.S.
Gold prices gave back 28 cents to $1,074.68 U.S. an ounce.
