Canada's main stock index climbed the charts on Tuesday, as shares in banks and energy companies were helped higher by a recovery in the price of oil to above $30.00 U.S. a barrel.
The S&P/TSX composite index leaped 158.94 points, or 1.3%, to greet noon at 12,302.10, after triple-digit losses Monday.
The Canadian dollar regained 1.1 cents to 71.11 cents U.S.
The energy group gained ground with TransCanada Corp up 2.2% to $46.92, Suncor Energy adding 2.5% to $30.70, and Canadian Natural Resources advancing 3.2% to $25.70.
The financials group gained, with Toronto-Dominion Bank rising 1.1% to $50.75 and insurer Manulife Financial up 1.4% to $18.47.
Oil rose towards $31.00 U.S. a barrel on Tuesday, lifted by hopes that OPEC and non-OPEC producers may be edging closer to a deal to tackle one of the biggest supply gluts in decades.
Retailer Metro Inc fell 1.7% to $41.15 after hitting an all-time high on better-than-expected profit and a hike in its dividend.
ON BAYSTREET
The TSX Venture Exchange recovered 5.03 points to 487.64.
All 13 TSX subgroups were higher, led by metals and mining, up 4.5%, while energy and gold each surged 3.5%.
ON WALLSTREET
U.S. stocks traded higher Tuesday, helped by a bounce in oil and some earnings beats, ahead of the release of the Federal Reserve meeting statement Wednesday.
The Dow Jones industrial average hurtled skyward 289.41 points, or 1.8%, to 16,174.63, with 3M contributing the most to gains.
Goldman Sachs was the second-greatest contributor to gains, trading more than 2.5% higher
The S&P 500 regained 21.55 points, or 1.2%, to 1,898.63. Energy jumped 2.5% to lead all S&P 500 sectors higher.
The NASDAQ index gained 52.28 points, or 1.2%, to 4,570.77, with Apple turning higher
3M briefly traded 5% higher after posting quarterly results that beat on both the top and bottom line. The conglomerate said recent restructuring moves have made its operation more efficient and positioned it for long-term success.
DuPont reported earnings that beat expectations by one cent, but revenue came in a touch below estimates due partly to the impact of a strong dollar. The chemical giant is in the process of merging with Dow Chemical, a deal the companies expect to complete in the second half of this year. Shares of DuPont held more than 1% higher in mid-morning trade.
Procter & Gamble rose about 3% after posting earnings that beat, on revenue that was essentially in line. The consumer products giant also gave 2016 revenue guidance that exceeded forecasts.
American International Group traded more than 1% higher after the firm announced a restructuring plan that included spinning off its mortgage insurance unit and selling its broker-dealer network, but said a full breakup of the firm would detract from shareholder value.
Activist investor Carl Icahn had called for a breakup when he took a stake in AIG late last year.
Freeport-McMoRan said it would look to reduce its hefty debt load and reported a lower-than-expected adjusted loss in the fourth quarter, squeezed by plunging commodity prices, oversupply and flagging Chinese demand. The stock held about half a percent higher.
Sprint, the number-four U.S. wireless carrier, reported a smaller quarterly loss, helped by cost cuts and higher number of subscriber additions. Shares held more than 19% higher in mid-morning trade after plunging 12.2% Monday on news the firm is cutting at least 2,500 jobs as part of a $2.5-billion U.S. cost savings plan.
Apple is scheduled to report after the closing bell, while DuPont, Procter & Gamble and Sprint were among those announcing results ahead of the open.
The Federal Open Market Committee kicks off its two-day meeting Tuesday and releases its statement Wednesday afternoon. No change in rates is expected but investors will be scrutinizing the statement for insight into policymakers' views on the economic environment and the future path of tightening.
In economic news, the flash Markit Services PMI for January came in at 53.7, compared to the final 54.3 December print.
Consumer confidence was 98.1, up from a slightly downwardly revised 96.3 in December.
The January Richmond Fed Manufacturing Index registered at two points, versus six points in December.
Earlier, the S&P/Case-Shiller 20-City Composite rose 5.8% year-over-year in November, topping expectations and faster than the 5.5% increase in October.
The November FHFA House Price Index rose 0.5% from the previous month, or 5.9% year-over-year.
Prices for the 10-year Treasury dipped, raising yields to 2.02% from Monday’s 2.01%. Treasury prices and yields move in opposite directions.
Oil prices notched ahead $1.05 a barrel to $31.39 U.S.
Gold prices hiked $10.17 to $1,118.07 U.S. an ounce.
