Stocks in this country rebounded from Monday’s two-year low on Tuesday as tensions in global financial markets eased and oil held onto gains from a six-year low.
The S&P/TSX composite index rocketed 224.12 points, or 1.8%, to close Tuesday at 12,919.61
The Canadian dollar eased 0.04 cents to 72.79 cents U.S.
Energy-related companies shot higher Tuesday as a selloff in crude ran out of steam amid signs that the U.S. may lift an export ban for the first time in 40 years.
Canadian Natural Resources advanced 85 cents, or 3% to $29.67, and Suncor Energy rose 58 cents, or 1.7%, to close at $35.13.
Unquestionably, though, the star of the show was Valeant Pharmaceuticals International, which rose $20.51, or 15.9%, to $149.75, its biggest gain in a month, after agreeing to cut some drug prices in a distribution pact with Walgreens Boots Alliance Inc.
The drug maker, under scrutiny for its drug-pricing practices, will trim prices by 10% for branded prescription-based skin and eye products.
The heavyweight financial group climbed, with Bank of Montreal up $1.67, 2.2% to $78.69, and Toronto-Dominion Bank rising 67 cents, or 1.3%, to $53.92.
Hudson’s Bay Co advanced 82 cents, or 5%, to $17.55 after the Wall Street Journal reported the retail giant 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 0.43 points to 495.75.
All but one of the 13 TSX subgroups stayed in the green on the day, led by health-care, haler by 3.7%, energy, improving 2.4%, and utilities, clicking higher 2.1%.
The lone laggard was in metals and mining, sliding 1.4%.
ON WALLSTREET
U.S. stocks leaped Tuesday, supported by stabilization in oil prices and expectations for the first interest rate hike in nine years. The Federal Reserve is due to announce its decision Wednesday afternoon.
The Dow Jones industrial average climbed 156.41 points – off its highs of the day -- to finish at 17,524.91, with Exxon Mobil leading advancers and 3M the greatest decliner.
3M fell more than 6% to account for about 60 points off the index. The stock fell after the firm lowered its 2015 earnings outlook.
The S&P 500 strengthened 22.45 points, or 1.1%, to 2,044.39, energy leading all 10 sectors higher.
The NASDAQ index gained 43.13 points, or 1.1%, to 4,995.36, narrowly failing to hold above the psychologically key 5,000 level and shaking off a 1% decline in Apple, which fell following news supplier Dialog Semiconductor lowered guidance
Among energy plays, Baker Hughes turned lower and Halliburton pared gains after both stocks resumed trading following the announcement the firms extended the deadline for closing the proposed merger.
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 began 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 80 cents a barrel to $37.11 U.S.
Gold prices gained a dollar to $1,060.86 U.S. an ounce.
