Canadian stocks rose a fourth day, extending the longest rally in a month, as the nation’s largest lenders advanced after the Bank of Canada backed away from cutting interest rates amid signs fiscal policy is boosting growth prospects.
The S&P/TSX Composite Index emerged from the session down from its day-long highs, but hung onto gains totaling 89.93 points to close at 13,671.35
The Canadian dollar eased 0.31 cents to 78.03 cents U.S.
Financial services stocks added strength, as Bank of Nova Scotia tacked on $1.11, or 1.8%, to $63.65, and Royal Bank of Canada added $1.03, or 1.4%, to $76.77.
The resource-dominant S&P/TSX remains tied to commodities prices, as crude and gold prices have found some footing in the second quarter after stumbling at the beginning of April.
Copper rose 1% to $4,816 U.S. a metric ton, leading industrial metals higher after China, the world’s biggest consumer, boosted foreign purchases to an all-time high
The Bank of Canada maintained its target for the overnight rate at 0.5%. The Bank Rate stayed at 0.75% and the deposit rate is 0.25%
China's exports in March returned to growth for the first time in nine months, adding to further signs of stabilization in the world's second-largest economy that cheered global investors.
ON BAYSTREET
The TSX Venture Exchange fell 5.2 points to 621.72
Eight of the 13 TSX subgroups were higher on the day, with industrials up 2.4%, financials boosted 1.3%, and metals and mining improved by 1.1%.
The five laggards were weighed mostly by gold, down 2.4%, materials, skidding 0.7%, and consumer staples, up 0.6%.
ON WALLSTREET
U.S. stocks zoomed Wednesday, helped by gains in financial stocks following JPMorgan's earnings, which beat estimates, and a rally overseas after encouraging China trade data.
The Dow Jones Industrials shot higher 187.03 points, or 1.1%, to 17,908.28, at its highest level of the year so far, with JPMorgan Chase leading advancers and Coca-Cola the greatest laggard.
The S&P 500 was higher 19.35 points to 2,081.07. Financials rose 2% in afternoon trade to lead S&P 500 advancers
The NASDAQ index climbed 75.33 points, or 1.6%, to 4,947.42, with Apple and Amazon.com leading major tech stocks higher.
Goldman Sachs and JPMorgan Chase were the top contributors to gains in the Dow. JPMorgan traded more than 4% higher after reporting first-quarter earnings that beat on both the top and bottom line. However, quarterly profit fell for the first time in five quarters and revenue from investment banking dropped 24.5%
Among Dow transport issues, Avis Budget jumped more than 7%.
February business inventories declined 0.1%. Inventories in January were revised down to show a 0.1% drop instead of the previously reported 0.1% gain.
Headline retail sales unexpectedly fell 0.3% in March after being flat in February. Ex-autos, gasoline, building materials and food services, retail sales edged up 0.1% after an upwardly revised 0.1% the prior month.
The producer price index declined 0.1% in March, following a 0.2% decline in February. Ex-food, energy and trade services, PPI was unchanged from the prior month and up 0.9% in the 12 months through March.
Prices for the 10-year Treasury shifted slightly higher, lowering yields to 1.76% from Tuesday’s 1.78%. Treasury prices and yields move in opposite directions.
Oil prices faded 59 cents a barrel to $41.58 U.S.
Gold prices dropped $12.81 to $1,242.82 U.S. an ounce.
