Gains returned to North American markets on Wednesday, on favourable news emanating from central banks in both Canada and the U.S.
The TSX gained 153.29 points to finish Wednesday’s session at 19,241.44.
The Canadian dollar regained 0.22 cents to 76.23 cents U.S.
Bausch Health Companies led health-care issues, as that group was at the forefront of winning subgroups. Bausch jumped 57 cents, or 6.8%, to $9.09, while cannabis concern Canopy Growth gathered 19 cents, or $4.46.
Gold stocks also jumped, with B2Gold taking on 28 cents, or 6.9%, to $4.37, while Iamgold attached 12 cents, or 7.8%, to $1.65.
In the tech field, Telus International leaped $1.31, or 3.5%, to $38.89, while Shopify gained $1.36, or 3.5%, to $40.61.
Only energy stocks begged off, as Vermilion Energy sank $2.63, or 7.9%, to $30.52, while Athabasca Oil lost 19 cents, or 7.9%, to $2.22.
Economically speaking, Canada’s merchandise exports decreased 2.8% in July, while imports were down 1.8%.
As a result, Canada’s merchandise trade surplus with the world narrowed from $4.9 billion in June to $4.1 billion in July. So far in 2022, trade surpluses have been observed in every month.
The Bank of Canada increased its target for the overnight rate to 3.25%, a hike of three quarters of a percentage point, with the Bank Rate at 3.5% and the deposit rate at 3.25%.
The IVEY PMI registered at 60.9 in August, a sharp increase from July’s 49.6, but still below the 66 figure from August 2021.
ON BAYSTREET
The TSX Venture Exchange restored 8.07 points, or 1.3%, to 631.64.
All but one of the 12 TSX subgroups were on higher ground by the end of the day, with health-care climbing 3.1%, gold soaring 2.8%, and information technology up 2.1%.
Energy was the lone laggard, down 3%.
ON WALLSTREET
Stocks rose Wednesday — trying to shake off a three-week slide — as rates and oil prices eased, cooling investor concerns about continued high inflation.
The Dow Jones Industrials regained 435.98 points, or 1.4%, to conclude the session at 31,581.28
The S&P 500 regained 71.69 points, or 1.8%. to 3,979.87
The NASDAQ Composite ended its seven-day losing streak, grabbing 246.99 points, or 2.1%, to close the session at 11,791.90.
Stocks rallied as Fed Vice Chair Lael Brainard reaffirmed that the central bank would do what it takes to stifle inflation, while also noting the risks of going too far. Many traders decided to focus on this latter point from her speech.
Markets have been hoping that the Fed would start to hand out smaller increases starting in September, but are now pricing in an 86% chance of a 0.75-percentage-point hike.
Shares of Twitter jumped 6.7% Wednesday morning after a Delaware court denied Elon Musk’s request to delay the trial over his attempt to back out of buying the company for $44 billion. The trial is expected to begin Oct. 17.
Shares of many well-known airlines rose Wednesday after United Airlines raised its third-quarter sales forecast and reported strong demand, despite the end to the peak summer travel season, helping lift airline shares. United rallied 5% on the day.
Treasury prices withered, raising yields to 3.27% from Tuesday’s 3.34%. Treasury prices and yields move in opposite direction.
Oil prices dropped $4.76 to $82.12 U.S. a barrel.
Gold prices regained $16.00 to $1,728.90 U.S. an ounce.