Markets in Canada rose sharply on Friday as the rally in crude oil prices supported the resource-linked market, while rising expectations of monetary easing by central banks in Europe and Japan supported risk appetite.
The S&P/TSX composite index galloped ahead 229.53 points, or 1.9%, to open Friday at 12,265.39
The Canadian dollar hiked 0.48 cents to 70.57 cents U.S.
Barrick Gold said it expects to take charges of up to $3 billion following an annual accounting impairment review. The company said it may have to take a goodwill impairment charge of about $1.8 billion, and asset impairment charges of $1.0-$1.2 billion, based on its preliminary analysis.
Barrick shares doffed 19 cents, or 1.6%, to $11.71.
The suspension of production at an eastern Canadian mine may lead Potash Corp of Saskatchewan to shelve plans to build a new West Coast shipping terminal with partners Mosaic Co and Agrium Inc.
Potash shares gained 54 cents, or 2.4%, to $23.34.
UBS cut the target price on Canadian Pacific Railway to $178.00 from $204.00 after the management made a surprising U-turn to a much more cautious view on whether they would move forward in their pursuit of a combination with NSC.
CP shares surged $12.01, or 8%, to $161.85 in the first hour of trade.
On the economic beat, Statistics Canada reported that Canada’s Consumer Price Index rose 1.6% in the 12 months to December, after increasing 1.4% in November. On a seasonally-adjusted monthly basis, inflation advanced 0.1% in December, after increasing 0.2% in November.
The agency also reported that following flat sales in October, retail sales rose 1.7% in November to $44.3 billion. The agency attributes much of the gain to higher sales at new car dealers. With the exception of gasoline stations, all sub-sectors showed an increase in sales, representing 90% of retail trade.
ON BAYSTREET
The TSX Venture Exchange rocketed 4.65 points, or 1%, to 475.05.
All but one of the 13 TSX subgroups were positive coming out of the gate Friday, as energy gushed 4.2%, industrials rumbled ahead 3.5% and metals and mining stocks proved 3.2% stronger.
Only gold was negative, dulling 1.7%.
ON WALLSTREET
U.S. stocks traded higher Friday, helped by a bounce in oil from multiyear lows and hopes of stimulus in the euro zone and Japan.
The Dow Jones industrial average leaped 233.53 points, or 1.5%, to begin a short week’s last session at 16,116.21, with Caterpillar leading advancers and GE and American Express the only decliners. Markets were shuttered Monday for Martin Luther King Day.
The S&P 500 picked up 31.14 points, or 1.7%, to 1,900.13, with energy briefly rising 4% to lead advancers.
The NASDAQ index flew 100.37 points, or 2.2%, to 4,572.43, as Apple jumped more than 3%.
As of Thursday's close, the major U.S. averages were down more than 8.5% for the year so far and on pace for a mild weekly decline.
General Electric reported earnings that beat by three cents, but revenue missed, pressured by a strong dollar and a delay in some shipments in power and renewables to 2016 from 2015.
The January U.S. Markit Flash Manufacturing PMI came in at 52.7, above the final December print of 51.2. December U.S. leading indicators fell 0.2%.
The National Association of Realtors said Friday existing home sales in December jumped a record 14.7% to an annual rate of 5.46 million units, after being temporarily held back by the introduction of new mortgage disclosure rules, which had caused delays in the closing of contracts in November.
The Chicago Fed December National Activity Index came in at minus 0.22, versus November's negative 0.36 read.
Prices for the 10-year Treasury fell, raising yields to 2.09% from Thursday’s 2.03%. Treasury prices and yields move in opposite directions.
Oil prices spiked $1.91 a barrel to $31.44 U.S.
Gold prices eased $5.30 to $1,095.90 U.S. an ounce.
