Equities in Toronto jumped on Tuesday, a day after hitting a more than two-year low, as shares in energy companies rebounded along with crude prices and heavyweight bank stocks also gained.
The S&P/TSX composite index continued its rally, popping 176.93 points, or 1.4%, to greet noon at 12,872.42.
The Canadian dollar gained 0.01 cents to 72.84 cents U.S.
The most influential mover on the index was Valeant Pharmaceuticals International Inc, which surged 16.1% to $150.02 after the company, accused of price gouging, said it would sell its skin and eye products at a discount in more than 8,000 Walgreens Boots Alliance pharmacies in the United States.
The energy group climbed as oil prices edged higher off multi-year lows. Canadian Natural Resources advanced 3% to $29.67 and Suncor Energy Inc rose 1.2% to $34.98.
The heavyweight financial group rallied, with Royal Bank of Canada advancing 1.4% to $73.45 and Toronto-Dominion Bank rising 1.3% to $53.96.
Hudson's Bay Co advanced 1.8% to $17.03 after the Wall Street Journal reported it was close to buying online retailer Gilt Groupe.
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 back 0.74 points to 495.44.
All but two of the 13 TSX subgroups were in the green by midday, led by health-care, haler by 3.9%, energy, better by 2.1%, and utilities, clicking higher 1.3%.
The two laggards were gold and materials, each off 0.2%.
ON WALLSTREET
U.S. stocks traded more than 1% higher Tuesday, helped by some stabilization in oil prices, as investors awaited the Federal Reserve's decision on rates due at the conclusion of its two-day meeting Wednesday afternoon.
The Dow Jones industrial average climbed 193.69 points, or 1.1%, midday to 17,562.19, with Goldman Sachs contributing the most to gains.
The S&P 500 strengthened 22.68 points, or 1.1%, to 2,044.62, with energy rising more than 2.5% to lead advancers, followed by a 2% gain in financials.
The NASDAQ index gained 56.21 points, or 1.1%, to 5,008.44
3M fell 5% as the greatest weight in the index after the firm lowered its 2015 earnings outlook. Apple traded mostly lower following news supplier Dialog Semiconductor lowered guidance
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 2.26% from Monday’s 2.22%. Treasury prices and yields move in opposite directions.
Oil prices gained 83 cents a barrel to $37.14 U.S.
Gold prices gained $1.97 to $1,061.83 U.S. an ounce.
