Canada's main stock index rose on Wednesday as miners and other materials stocks led the rebound and some energy stocks weighed ahead of a U.S. Federal Reserve rate decision and outlook.
The S&P/TSX Composite soared 66.55 points to break for lunch hour at 13,950.78. If the gains hold out, they could end a five-day losing streak for the index that has led to a one-month low.
The Canadian dollar dipped 0.24 cents to 77.45 cents U.S.
The most influential gainers included Barrick Gold, which rose 1.7% to $25.86, and Teck Resources, which advanced 5.5% to $14.91.
Potash Corp advanced 1.9% to $22.03.
On the other side of the ledger, Suncor Energy fell 0.5% to $33.98 and Encana Corp lost 1.5% to $10.20, while the overall energy group was barely lower as oil prices headed for a fifth straight fall.
Suncor, Canada's largest crude producer, told employees the massive wildfire that struck northern Alberta in May will cost it nearly $1 billion.
ON BAYSTREET
The TSX Venture Exchange stayed ahead of breakeven 2.26 points to 710.01
All but one of the 13 TSX subgroups gained ground, with metals and mining stocks surging 4.8%, while materials and health-care each climbed 1.1%.
The lone negative stock was consumer staples, down 0.3%.
ON WALLSTREET
U.S. stocks traded higher Wednesday, after four straight days of declines, as investors awaited the afternoon conclusion of the Federal Reserve meeting.
The Dow Jones Industrials was off its highs of the morning, but still positive 34.35 points to 17,709.17, with Home Depot leading advancers and Intel the greatest decliner.
The S&P 500 picked up 4.78 points at 2,080.10, with utilities lagging.
The NASDAQ picked up 14.26 points to 4,857.81
In U.S. economic news, U.S. crude oil futures held about 0.5% lower above $48.00 U.S. a barrel. Earlier, oil came well off session lows to briefly attempt gains after Energy Information Administration data showed U.S. crude oil stocks declined 933,000 barrels.
Late Tuesday, the American Petroleum Institute said crude inventories rose by 1.2 million barrels versus expectations for 2.3 million barrel decline.
Elsewhere, industrial production declined 0.4% in May and April's figure was revised lower to show a 0.6% increase versus the previously reported 0.7%. May capacity utilization edged lower from the prior month to 74.9%
The producer price index rose a slightly more-than-expected 0.4% in May, following a 0.2% rise the prior month, the Labor Department said. In the 12 months through May, PPI fell 0.1% after being unchanged in April.
The core PPI that excludes food, energy and trade services fell 0.1% last month after rising 0.3% in April, for a 0.8% rise in the 12 months through May.
The June Empire State Manufacturing Survey rose to 6.0 from a negative 9 print last month. Sub-index components on new orders and shipments also recovered positive territory, while inventories fell further into negative territory and the employment index was zero.
The Federal Open Market Committee is set to conclude its meeting at 2 p.m. ET with the release of its statement and economic projections. Fed Chair Janet Yellen is scheduled to hold a press briefing at 2:30 p.m.
Prices for the 10-year Treasury were higher, thus lowering yields to 1.6% from Tuesday’s to 1.62%
Oil prices slid 11 cents a barrel to $48.38 U.S.
Gold prices skidded 20 cents to $1,287.90 U.S. an ounce.
