Canada’s main stock market posted a triple digit advance in the midweek trading session, leading most other world markets in a broad-based gain paced by the financial sector, among others. The S&P/TSX Composite Index gained 135 points Wednesday, or 0.9% to close at 15,609. U.S. markets were also higher, but trailed the TSX, which shed 42 points on Tuesday.
All sectors advanced today, paced by better than 1% increases in tech, healthcare, consumer staples, industrials and financials. The drop in the loonie also added support. Energy added 0.7% as Nymex crude rallied 0.5% following the EIA inventory data which showed a 1.8 million barrel decline in crude stocks, versus the Street’s forecast for a 1.5 million barrel increase. Gold shed more than 1% but the materials sector still ended in modestly positive territory, boosted by gains in other metals, such as copper and palladium.
In stock news, heavily traded Bombardier (BBD-B.TO) shares lost nearly 8% Wednesday as investors weighed the prospect of a 219% duty on U.S. sales of its flagship C-Series passenger jets and the European merger of two railway rivals. Metro (MRU.TO) gained 8% after the grocer announced it was in talks to take over the Jean Coutu Group, a Quebec-based pharmacy chain, for $4.5 billion. Jean Coutu (PJC-A.TO) shares were up about 6%. Freshii (FRII.TO) shares were off 1% after chair Matthew Corrin tried to reassure investors about the restaurant chain’s growth after it announced it won’t be opening as many locations as expected. Freshii shares fell 35% Tuesday after the company lowered its guidance for new store openings and scaled back its longer-term expansion targets. TD Bank (TD.TO), one of the day’s most influential shares, added 1.3% while Manulife Financial (MFC.TO) added 2.4%.
In economic news, Bank of Canada governor Stephen Poloz said that after a pair of interest-rate hikes this summer there is “no predetermined path” for the benchmark going forward. In a speech Wednesday, Poloz said many unknowns and external risks remain, even though the economy had a surprisingly strong start to the year. Due to these uncertainties, Poloz warned there could be more surprises ahead, in “either direction,” and the Bank will continue to be “data dependent,” as it “gathers the signals.” As for criticisms that the Bank didn’t communicate enough before its September interest rate hike, Poloz told reporters communication with the public is a “subject of active discussion.”
The Canadian dollar lost seven-tenths of a cent to 80.13 US.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.