Canada’s main stock index edged higher on Wednesday, helped by gains in commodity-linked stocks and the banking sector after the Bank of Canada kept interest rates on hold as expected.
The TSX gained 107.52 points to reach noon EST Wednesday at 20,383.06
The Canadian dollar eased off 0.2 cents to 72.52 cents U.S.
Among stocks, TC Energy nicked up two cents to $55.92 as the U.S. pipeline regulator said the oil services provider would be required to reduce operating pressure on its Keystone pipeline that spilled oil in rural Kansas in December.
The central bank held its target for the overnight rate at 4.5%, with the Bank Rate at 4.75% and the deposit rate at 4.5%.
Elsewhere in the economic docket, Statistics Canada reported that, in January, Canada’s merchandise exports increased 4.2%, while imports were up 3.1%. As a result, Canada’s merchandise trade surplus with the world widened from a revised $1.2 billion in December 2022 to $1.9 billion in January 2023.
ON BAYSTREET
The TSX Venture Exchange improved 1.93 points to 628.74.
All but two of the 12 TSX subgroups were higher at noon, with information technology chugging 1.6%, materials stronger 1.2%, and gold 1% brighter.
The two laggards were health-care stocks, sliding 0.4%, and consumer discretionary, off 0.2%.
ON WALLSTREET
Stocks wavered Wednesday, attempting to recover from Tuesday’s broad-based selloff, spurred by comments from Federal Reserve Chairman Jerome Powell hinting at higher interest rates for longer.
The Dow Jones Industrials fell back 80.26 points to pause for lunch at 32,776.20, dragged by declines from Merck and McDonald’s.
The S&P 500 recovered 4.45 points to 3,990.82.
The NASDAQ Composite grabbed 38.24 points to 11,568.57.
Stocks briefly took a slight leg lower after data showed job openings fall less than expected in January. A stronger-than-expected February private payrolls report on Wednesday also suggested that the economy is standing strong despite the Fed’s hiking campaign, adding to investor concern that bigger rate increase may be ahead. It precedes Friday’s February jobs data after January’s blockbuster report.
Job openings fell in January but remained elevated and still outnumber available workers by a nearly two-to-one margin, the U.S. Labor Department reported Wednesday.
Available positions totaled 10.824 million for the month, a decline of about 410,000 but still above estimates for 10.58 million.
Stocks are coming off a down session after comments from Powell’s Senate testimony cautioned lawmakers that the central bank’s terminal rate will likely be higher than previously anticipated due to stubbornly high economic data in recent weeks.
Prices for the 10-year Treasury gained, lowering yields to 3.93% from Tuesday’s 3.97%. Treasury prices and yields move in opposite directions.
Oil prices dipped 80 cents to $76.78 U.S. a barrel.
Gold prices inched up $2.90 to $1,822.90 U.S. an ounce.