Stocks in Canada’s largest centre jumped in early trade on Tuesday, including gains for financials, while the firmer oil price supported energy stocks and Valeant Pharmaceuticals International Inc surged more than 13%.
The S&P/TSX composite index recovered in a big way Tuesday morning, rallying 193.34 points, or 1.5%, to open at 12,888.83.
The Canadian dollar gained 0.09 cents to 72.92 cents U.S.
The Wall Street Journal reports this morning department store whiz Hudson's Bay Co is close to a deal to buy online luxury retailer Gilt Groupe for about $250 million U.S. Shares in The Bay shied away six cents to $16.67.
Data from consulting firm PayNet showed commercial borrowing by small firms in Canada climbed in October, a sign that companies in the energy-dependent economy are adjusting to sharply lower oil prices and showing signs of expanding once more.
On the economic front, Statistics Canada reported that manufacturing in this country declined 1.1% to $50.4 billion in October, the third straight decrease.
Elsewhere, the Canadian Real Estate Association reported that national home sales were up 1.8% on a month-over-month basis in November 2015. Actual (not seasonally-adjusted) activity was up 10.9% compared to November 2014.
ON BAYSTREET
The TSX Venture Exchange inched forward 0.06 points to 496.24.
All 13 TSX subgroups were in the green in the first hour of trading, led by metals and mining, galloping 3.3%, health-care, haler by 2.8%, and energy, 2.3% more energetic.
ON WALLSTREET
U.S. stocks traded higher Tuesday, helped by some stabilization in oil prices, as the Federal Reserve was set to begin its key two-day meeting.
The Dow Jones industrial average climbed 197.79 points, or 1.1%, to open Tuesday at 17,566.29, with Goldman Sachs contributing the most to gains.
The S&P 500 strengthened 27.4 points, or 1.4%, to 2,049.34, with energy briefly rising more than 2.5% to lead advancers, followed by financials.
The NASDAQ index gained 67.04 points, or 1.4%, to 5,019.27, topping the psychologically-key 5,000 level as nearly all major tech and biotech stocks gained. Apple traded more than 0.5% lower, following lowered guidance from a supplier.
Earlier, U.S. stock index futures came off session highs as 3M fell more than 4.5% in pre-market trade. The firm lowered its 2015 earnings outlook, citing continued slow growth in the global economy. The company said it now expects full-year growth of about 1%, compared with previous guidance of 1.5% to 2%.
Apple also weighed, after key supplier Dialog Semiconductor lowered guidance for fourth-quarter revenue.
On matters economic, headline November Consumer Price Index (CPI) came in unchanged, while ex-food and energy the figure rose 0.2%. In the 12 months through November, the core CPI rose 2%, matching the Fed's target for the first time since May 2014.
The Empire Manufacturing index for December showed minus 4.6, compared with November's minus 10.7 print.
The Fed begins meeting Tuesday, and will release its post meeting statement Wednesday at 2 p.m. ET.
The central bank is widely expected to raise the fed funds rate by a quarter point Wednesday, while emphasizing that the pace of tightening will be gradual. A hike would be the first since June 2006.
Prices for the 10-year Treasury faded, hiking yields to 2.27% from Monday’s 2.22%. Treasury prices and yields move in opposite directions.
Oil prices gained 73 cents a barrel to $37.04 U.S.
Gold prices gained $2.39 to $1,062.25 U.S. an ounce.
