(CORRECTION: CONTAINS UPDATE OF TSX VENTURE CLOSE)
Investors in Canada joined their American cousins in celebrating a burgeoning stock market Wednesday, with a sigh of relief emitted stateside that inflation isn’t all that bad.
The TSX leaped 192.21 points to close Wednesday at 20,070.77.
The index has underperformed so far this year, rising over 3% compared to an over 16% rise in the U.S. S&P 500 index, weighed down by volatile commodity prices on a weak demand outlook from top consumer China.
The Canadian dollar climbed 0.27 cents to 75.84 cents U.S.
Gold proved the champion Wednesday, as Equinox Gold collected 50 cents, or 7.8%, to finish at $6.94, while rival Iamgold gathered 28 cents, or 7.8%, to $3.85.
Among materials, Endeavour Silver picked up 41 cents, or 10.7%, to $4.26, while Fortuna Silver Mines hiked 42 cents, or 10.1%, to $4.59.
Real-estate also looked up, as units of First Capital REIT spiked 38 cents, or 2.7%, to $14.51, while First Service Corp. jumped $5.45, or 2.7%, to $210.55.
Consumer staples did not fare so well, however, as Jamieson Wellness got clobbered 43 cents, or 1.5%, to $27.87, while Loblaw Companies slipped 68 cents to $116.32.
Among health-care issues, Tilray lost a nickel, or 2.2%, to $2.27, while Bausch Health Companies surrendered 17 cents, or 1.5%, to $11.25.
The Bank of Canada today increased its target for the overnight rate a quarter-percentage point to 5%, with the Bank Rate at 5.25% and the deposit rate at 5%. The Bank is also continuing its policy of quantitative tightening.
ON BAYSTREET
The TSX Venture Exchange regained 8.47 points Wednesday to 626.53.
All but two of 12 TSX subgroups gained ground, with gold surging 4.7%, materials mightier by 3.2%, and real-estate up 1.7%.
The two laggards were health-care, down 0.4%, and consumer staples, off 0.1%.
ON WALLSTREET
Stocks rose Wednesday after new data raised hope that the Federal Reserve can bring down inflation without pushing the U.S. economy into a recession. The S&P 500 reached a new high for 2023 and its highest level since April 2022.
The Dow Jones Industrials gathered 86.01 points to conclude Wednesday at 34,347.43.
The S&P 500 hiked 32.90 points to 4,472.16
The NASDAQ index popped 158.26 points, or 1.2%, to 13,918.96.
Bank stocks jumped on Wednesday. Citigroup hiked 1.8% and Goldman Sachs saw shares climb 1.7%. Regional banks also saw gains, with Comerica adding 3.1%, and Zions Bancorporation jumping 2.8%.
The consumer price index rose 3% on a year-over-year in June. Economists polled by Dow Jones expected a 3.1% increase. Month over month, the index rose 0.2% last month, also less than forecast. On top of that, core CPI — which strips out volatile food and energy prices — also rose less than expected.
Prices for the 10-year Treasury were sharply higher, lowering yields to 3.87% from Tuesday’s 3.98%. Treasury prices and yields move in opposite directions.
Oil prices improved $1.19 to $76.02 U.S. a barrel.
Gold prices soared $26.40 to $1,963.50 U.S. an ounce.