Canadian stocks rose for a second consecutive session on Tuesday as easing concerns about the global economy propped up financial and consumer companies.
The S&P/TSX Composite Index was ahead 173.74 points to close Tuesday at 12,554.98.
The Canadian dollar dove 31 cents to 72 cents U.S.
A two-day advance has trimmed the benchmark gauge’s decline in 2016 to almost 3.5%, making it the second best-performing developed market in the world this year, behind only New Zealand.
Financial shares helped contribute to the index’s advance. Royal Bank of Canada picked up $1.43, or 2.1%, to $69.41, while Toronto-Dominion Bank gained $1.07, or 2.1%, to $51.88.
Element Financial Corp. climbed 79 cents, or 6.3%, to $13.28, after the company announced plan to split into two public companies: Element Fleet Management and Element Commercial Asset Management. Aviation finance will be discontinued, according to a statement Monday.
Consumer stocks discretionary rose, as Restaurant Brands International Inc. led gains, adding $2.61, or 5.9%, to $46.91, after the owner of Burger King and Tim Hortons reported fourth-quarter profits that topped analysts’ estimates.
Bombardier Inc. added nine cents, or 11.1% to 90 cents, after the company said it expects to get certification for its new jet from U.S. and Europe in the first half of this year. Shares crossed below $1 in late January and are down 68% over the past year.
Oil prices retreated Monday after a pledge by Russia and Saudi Arabia to freeze output failed to convince traders the move was enough to tackle the global crude surplus. Energy companies in Canada were little changed. Penn West Petroleum Ltd. climbed five cents, or 4.4%, to $1.19, while Athabasca Oil Corp. sank nine cents, or 8%, to $1.03
Among gold stocks, Goldcorp. slumped $1.16, or 5.3%, to $20.55.
On the economic front, Statistics Canada reported that manufacturing sales increased 1.2% to $51.6 billion in December, their second straight gain.
In December, sales increased in the motor vehicle and wood products industries, representing over half of the national gain.
Elsewhere, the Canadian Real Estate Association reported national home sales edged up by 0.5% from December to January. Actual (not seasonally-adjusted) activity was up 8% compared to January 2015. The number of newly listed homes retreated by 4.9% from December to January.
ON BAYSTREET
The TSX Venture Exchange deducted 0.73 points to 510.41
All but two of the 13 TSX subgroups were higher on the day, as metals and mining bolted 9.1%, while health-care soared 4.1%, and information technology popped 3.1%.
The two laggards were gold, down 6%, and materials, sliding 2.3%.
ON WALLSTREET
U.S. stocks closed higher Tuesday, helped by gains in consumer discretionary and financials, as well as positive developments in China.
The Dow Jones industrial average sprinted higher 222.57 points, or 1.4%, by to close at 16,196.41. Boeing and Home Depot contributed the most to gains, while Travelers Cos and Wal-Mart were among the few weights on the index.
The S&P 500 leaped 30.7 points, or 1.7%, to 1,895.48. Consumer discretionary closed up 2.5% to lead all S&P 500 sectors higher
The NASDAQ index spiked 98.44 points, or 2.3%, to 4,435.96, as news of Apple launching a $12-billion U.S. nine-part bond offering was another positive for market sentiment.
In corporate news, Alibaba has bought a 5.6% stake in Groupon and become the fourth-largest shareholder of the daily deals and e-commerce website.
In economic news, the U.S. Empire Manufacturing Index for February came in at negative 16.64, a worse read than expected but better than January's print of minus 19.37.
Homebuilder sentiment in February declined to 58.
Prices for the 10-year Treasury dipped, raising yields to 1.79% from Friday’s 1.75%. Treasury prices and yields move in opposite directions.
Oil prices faded 33 cents a barrel to $29.11 U.S.
Gold prices slumped $9.22 to $1,200.08 U.S. an ounce.
