Equities in Canada’s largest market opened higher on Wednesday, led by gains in the energy sector as oil prices climbed.
The S&P/TSX Composite Index 72.93 points to open for business Wednesday at 15,995.54
The Canadian dollar gained 0.13 cents at 76.95 cents U.S.
Bank of Montreal on Wednesday reported second-quarter results which were ahead of market expectations, driven by strong performances at its retail and wealth management businesses in Canada and the United States.
BMO shares docked 13 cents to $99.54.
More than 3,000 locomotive engineers and conductors at Canadian Pacific Railway – members of Teamsters Canada -- have gone on strike on Tuesday night.
CP shares nonetheless gained $1.99 to $243.00
CIBC raised the price target on Keyera Corp. to $46.00 from $45.00. Keyera shares decreased 59 cents, or 1.7%, to $34.16.
CIBC cut the price target on Kinder Morgan Canada to $17.00 from $22.00. Kinder Morgan shares dipped a penny to $16.09.
CIBC cut the rating on Laurentian Bank of Canada to underperformer from neutral and cut the price target to $49.00 from $55.00. Laurentian shares tumbled $2.70, or 5.7%, to $44.90.
The Bank of Canada today maintained its target for the overnight rate at 1.25% The Bank Rate is correspondingly 1.5% and the deposit rate is 1%, however, a poll of economists says firmer price and wage inflation will prompt two increases in the second half of 2018.
On the economic beat, Statistics Canada said its Industrial Product Price Index increased 0.5% in April, mainly due to higher prices for energy and petroleum products.
The agency’s Raw Materials Price Index rose 0.7% in April, primarily due to higher prices for crude energy products.
ON BAYSTREET
The TSX Venture inched higher 0.98 points to 769.63
All but two of the 12 TSX subgroups were higher, with energy stocks gaining 1.3%, while information technology and materials each added 0.9%.
The two laggards were utilities, sliding 0.4%, and real-estate, off 0.1%.
ON WALLSTREET
U.S. stocks traded higher Wednesday as financial stocks rebounded from steep losses in the prior session and Italian credit fears eased.
The Dow Jones Industrials hiked 125.49 points to 24,486.94, with Boeing, UnitedHealth and Goldman Sachs leading the blue-chip stocks higher.
The S&P 500 gained 15.56 points to 2,705.42, as a rise in U.S. interest rates ushered financial stocks higher and a rise in oil prices provided relief to a recently battered energy sector.
The NASDAQ shot higher 34.69 points to 7,431.29, amid a 0.2% gain in Microsoft and a 1% gain in Intel.
In the prior session, the Dow fell 391.64 points — or 1.6%— after Italy's prime minister over the weekend appointed former International Monetary Fund official Carlo Cottarelli as interim prime minister to help restore political order amid a swell in populist sentiment.
Chinese trade negotiations also captured Wall Street's attention Wednesday. The White House's Tuesday decision to continue to pursue action on some $50 billion worth of Chinese goods could stall talks with Beijing, according to a report from The Wall Street Journal.
Hiring decelerated south of the border in May, with private companies adding 178,000 positions even amid other signs of a tightening jobs market, according to a report Wednesday from ADP and Moody's Analytics.
The number missed expectations of economists who had forecast 190,000. Moody's Analytics and ADP also revised its April number downward to 163,000, a decline of 41,000 from the original 204,000.
Meanwhile, the Federal Reserve will release its Beige Book at 2:00 p.m. ET.
Prices for the benchmark for the 10-year U.S. Treasury gained sharply, lowering yields to 2.79% from Tuesday’s 2.79%. Treasury prices and yields move in opposite directions.
Oil prices picked up 62 cents at $67.35 U.S. a barrel.
Gold prices picked up a dollar to $1,305.10 U.S. an ounce.
