Equities in Canada’s largest centre rose in early trade on Wednesday as energy stocks surged with oil prices as some of the world's largest oil producers agreed to curb output for the first time since 2008.
The S&P/TSX Composite climbed 112.85 points to begin Wednesday at 15,112.66
The Canadian dollar added 0.17 cents at 74.57 cents U.S.
Royal Bank of Canada reported a worse than expected decline in fourth-quarter profits, reflecting lower earnings from its capital markets business and an increase in loans to oil firms turning bad.
RBC stock dropped $1.96, or 2.2%, to $88.16.
TMX Group says it is committed to exploring new technologies such as blockchain despite the exit of its first chief digital officer after less than a year in the job.
TMX shares gathered 36 cents to $66.36.
KBW raised the target price on Bank of Nova Scotia to $77.00 from $69.00, citing a stable credit, outperformance in investment banking and trading revenues, and slightly better than expected loan growth.
Scotiabank shares picked up 47 cents to $74.17.
Berenberg raised the target price on Lundin Mining to $7.00 from $6.00, considering a solid balance sheet, good management and sound assets.
Lundin shares eked up three cents to $6.62.
Berenberg raised the rating on Teck Resources to hold from sell, reflecting the stronger coking coal price environment.
Teck shares vaulted 52 cents, or 1.5%, to $34.35.
On the economic front, Statistics Canada reported that gross domestic product grew 0.9% in the third quarter, following a 0.3% decline in the second quarter.
StatsCan also says exports of energy products, rebounding from a second quarter decline, boosted growth.
The agency’s industrial product price index rose 0.7% in October, led by higher prices for energy and petroleum products, while, in the same month, the raw materials price index increased 3.3%, mainly due to higher prices for crude energy products.
ON BAYSTREET
The TSX Venture Exchange recovered 1.25 points to 736.16
All but three of the 12 TSX subgroups were lower, with gold sliding 2.4%, materials down 0.6%, and consumer staples off 0.4%.
The three gainers were energy, bolting 7% higher, industrials ahead 0.8%, and information technology peeking up 0.2%.
ON WALLSTREET
U.S. equities traded mostly higher on Wednesday, the last trading day of the month, as oil prices surged amid a reported deal by the Organization of the Petroleum Exporting Countries to cut production, while investors digested solid economic data.
The Dow Jones Industrials marched ahead 80.05 points early Wednesday to a new record intraday high of 19,201.65, as Goldman Sachs and Chevron gained the most.
The S&P 500 gained 2.94 points to 2,207.60, also a new high, with energy spiking about 4% to lead advancers
The NASDAQ composite index subtracted 11.77 points to 5,368.15
On the data front, private companies added 216,000 jobs in November, well above the expected 165,000, according to ADP and Moody's Analytics. ADP and Moody's report is often seen as a prelude to the U.S. government's monthly jobs report, due Friday.
Meanwhile, consumer spending rose 0.3% in October, while personal income gained 0.6%, the best showing since April.
The Chicago Purchasing Managers’ index reading for November came in at 57.6, well above an October reading of 50.6. Pending home sales rose 0.1% month over month in October and 1.8% year over year, in line with expectations.
Other data due Wednesday include the latest Beige Book.
An OPEC source told the media the group had agreed on a plan to cut output based on an outline hammered out in Algiers in September.
Treasury prices for the 10-year note slumped, raising yields to 2.39% from Tuesday’s 2.31%. Treasury prices and yields move in opposite directions.
Oil prices spiked $3.42 to $48.65 U.S. a barrel
Gold prices stumbled $13.60 to $1,177.20 U.S. an ounce.
