Canada’s main stock index opened higher on Wednesday, tracking global stocks that rose on hopes for progress in Russia-Ukraine peace talks, while investors awaited the U.S. Fed’s policy outcome.
The S&P/TSX Composite Index charged out of the gate Wednesday, taking on 188 points to 21,375.84.
The Canadian dollar popped 0.47 cents to 78.77 cents U.S.
A story in Tuesday’s Globe and Mail indicates Globalive Capital Inc has offered to buy Shaw Communications’ wireless telecoms unit Freedom Mobile for $3.75 billion in cash.
Shaw shares picked up 13 cents to $38.55.
TD Securities raised the target price on George Weston to $185.00 from $175.00. Weston shares jumped $1.14 to $156.74.
Scotiabank raised the target on Stelco Holdings price to $56.00 from $48.00. Stelco climbed $1.54, or 3.3%, to $48.96.
Eight Capital raised the target price on Turquoise Hill Resources to $40.00 from $30.00. Turquoise Hill shares dropped 27 cents to $33.83.
Economically speaking, Statistics Canada said wholesale trade grew 4.2% in January to $79.8 billion.
This increase marked the sixth consecutive month of growth for the sector and was driven by strong sales in three subsectors: building material and supplies, personal and household goods, and machinery, equipment and supplies.
The consumer price index rose 5.7% on a year-over-year basis in February, up from a 5.1% gain in January. On a seasonally adjusted monthly basis, the CPI rose 0.6% in February.
ON BAYSTREET
The TSX Venture Exchange popped 9.85 points, or 1.2%, to 828.18.
All but two of the 12 TSX subgroups were positive in the first hour, as information technology rocketed 1.8%, consumer discretionary stocks leaped 1.4%, and health-care was stronger 1.2%.
Only gold, down 0.9%, and materials, shrinking 0.1%, missed the party.
ON WALLSTREET
The S&P 500 rose Wednesday as traders tried to build on the sharp gains from the previous session, while Wall Street awaited the Federal Reserve’s latest monetary policy decision.
The Dow Jones Industrials added to this week’s gains, increasing 279.45 points to open Wednesday at 33.823.79.
The much-broader index continued its upward trajectory, hiking 50.71 points, or 1.2%, to 4,313.16.
The NASDAQ Composite spiked 254.16 points, or 2%, to 13,202.78.
Micron Technology was among the best-performing S&P 500 stocks, gaining more than 4%. Starbucks shares also climbed 6% after an upgrade from JPMorgan, while Dow member Boeing advanced more than 2.9%.
Stocks were rallying in part on signs that a ceasefire could be possible in the Russia-Ukraine war.
Ukrainian President Volodymyr Zelenskyy said a peace agreement was beginning to “sound more realistic” in an address to the nation Tuesday. Russian Foreign Minister Sergey Lavrov told the BBC there was “some hope of reaching a compromise.” Russian State media quoting the Kremlin echoed similar sentiments overnight.
In economic data, consumers continued to spend in February through at a slower pace than expected, according to a Commerce Department report Wednesday. Advance retail sales grew 0.3% for the month, slightly below the 0.4% Dow Jones estimate.
To be sure, all eyes are on the Fed on Wednesday, as the central bank wraps up a key two-day policy meeting.
The Fed is widely expected to raise rates by a quarter-point, the first hike since 2018. Watchers are also expecting the central bank to offer a new quarterly forecast that could indicate five or six more hikes this year.
The Fed is expected to announce an interest rate decision and economic projections at 2 p.m. on Wednesday, which will followed by a briefing from Federal Reserve Chair Jerome Powell.
Treasury prices gained slightly, lowering yields to 2.15% from Tuesday’s 2.16%. Treasury prices and yields move in opposite directions.
Oil prices jumped 84 cents to $97.28 U.S. a barrel.
Gold prices stumbled $13.30 to $1,915.40 U.S. an ounce.