Energy companies led gains on Canada’s main stock index on Wednesday, boosted by higher oil prices, as the Bank of Canada held borrowing costs steady at its interest rate meeting.
The TSX surged 112.78 points to break for lunch Wednesday at 18,711.97
The Canadian dollar faded 0.08 cents to 79 cents U.S.
The largest percentage gainers on the TSX were oil producer Vermilion Energy, which jumped 84 cents, or 9.1%, to $10.03, and food retailer Empire Company, which rose $3.04, or 8.3%, to $39.87.
E-commerce platform Shopify fell $36.48, or 2.6%, the most on the TSX, to $1,394.58, and the second biggest decliner was miner MAG Silver, down 70 cents, or 3.3%, to $20.75.
The Bank of Canada today held its target for the overnight rate at the effective lower bound of 0.25%, with the Bank Rate at 0.5% and the deposit rate at 0.25%.
The central bank is maintaining its extraordinary forward guidance, reinforced and supplemented by its quantitative easing program, which continues at its current pace of at least $4 billion per week.
ON BAYSTREET
The TSX Venture Exchange inched up 0.66 points, to 964.84.
All but two of the 12 TSX subgroups stayed positive as morning became afternoon, with consumer staples ahead 1.9%, energy rumbling 1.7%, and utilities 1.1% in the green.
The two laggards proved to be information technology, swooning 0.7%, and health-care, off 0.1%.
ON WALLSTREET
U.S. stocks jumped on Wednesday after a report showed tame inflation, easing worries about rising prices that have jolted yields higher and unnerved equity investors.
The Dow Jones Industrials leaped 392.47 points, or 1.2%, at 32,225.21
The S&P advanced 25.16 points to move into noon hour at 3,900.60,
UBS hiked its year-end S&P 500 target to 4,250 from 4,100 on Tuesday, representing a near 9% gain from here. UBS turned more bullish on stocks for the year with incoming stimulus and pent-up consumer spending.
The NASDAQ Composite came off its highs of the morning, but still prospered 43.17 points to 13,116.99.
Tesla jumped another 2%. Zoom Video was also 3% higher. Cathie Wood’s flagship active exchange-traded fund Ark Innovation ETF popped another 3% after soaring 10% for its best day ever on Tuesday.
Data out Wednesday morning showed February consumer prices increased 0.4%, matching expectations from economists polled by Dow Jones. The Consumer Price Index gained 1.7% on a year-over-year basis, also in line with estimates.
Prices for 10-Year Treasurys stood still, keeping yields at Tuesday’s 1.54%.
Oil prices tailed off 30 cents to $64.71 U.S. a barrel.
Gold prices dulled $1.30 to $1,715.60.