Canada’s main stock index opened higher on Tuesday, boosted by gains in financial and technology stocks, as an in-line reading of U.S. inflation data bolstered hopes of smaller interest rate hikes by the Federal Reserve.
The TSX moved up 180.82 points to start Tuesday out at 19,769.72.
The Canadian dollar gained 0.45 cents to 73.21 cents U.S.
Finance Minister Chrystia Freeland met with the country’s banking regulator and heads of financial institutions after regulators took temporary control of SVB’s Canadian unit.
Energy stocks led the parade of gainers, with Headwater Exploration up 19 cents, or 3.1%, to $6.37, while Nuvista was up 42 cents, or 3.6%, to $11.97.
On the economic calendar, Statistics Canada said manufacturing sales increased 4.1% in January, primarily on higher sales in the petroleum and coal product, motor vehicle and food industries.
ON BAYSTREET
The TSX Venture Exchange recovered 5.2 points to 613.06.
All but two of the 12 TSX subgroups were positive in the first hour, led by energy, up 1.4%, health-care, better by 1.2%, and information technology ahead 1.1%.
The two laggards were gold, down 0.4%, and communications, off 0.2%.
ON WALLSTREET
U.S. stocks rallied Tuesday, boosted by a rebound in regional banks after they sold off in the previous session.
The Dow Jones Industrials regained 394.43 points, or 1.2%, to 32,212.39, as it tries to end a slump of five straight days.
The S&P 500 recovered 70.57 points, or 1.8%, to 3,926.35.
The NASDAQ Composite leaped 241.13 points, or 2.2%, to 11,420.97.
Bank stocks rebounded after getting pummeled during Monday’s trading session. The SPDR S&P Regional Banking ETF (KRE) rose more than 9%. Shares of First Republic Bank popped more than 55% after closing down nearly 62% on Monday. KeyCorp shares 16% in a relief bounce following a 27% decline.
The consumer price index rose 0.4% in February from January, matching the consensus estimate of economists polled by Dow Jones. The annualized increase of 6% was also in line with economists’ expectations. So-called “core” CPI, which removed volatile food and energy prices, grew from the prior month slightly more than economists expected at 0.5%, while the year-over-year increase of 5.5% came in line with what they anticipated.
Prices for the 10-year Treasury dropped, raising yields to 3.66% from Monday’s 3.55%. Treasury prices and yields move in opposite directions.
Oil prices erased 77 cents to $74.03 U.S. a barrel.
Gold prices flopped $6.70 to $1,909.80 U.S. an ounce.