Canada’s main stock index climbed on Thursday, pulled up by commodity-linked stocks, as investors cheered inflation numbers from the United States that revived hopes of a rate cut by the Federal Reserve.
The TSX Composite recovered 111.64 points at 21,355.41.
The Canadian dollar regained 0.19 cents to 73.84 cents U.S.
Canadian Imperial Bank of Commerce exceeded estimates for first-quarter profit, while TD Bank Group reported declines in its first-quarter profit as the bank set aside higher provisions for potential bad debts.
CIBC shares gained $1.07, or 1.7%, to $63.90, while TD picked up 71 cents to $81.32.
Royal Bank of Canada and Bank of Montreal also said in the results reported earlier in the week that they had built larger provisions to prepare for soured loans.
Meanwhile, Canadian Natural Resources beat fourth-quarter profit estimates on Thursday, helped by record production. Natural Resources jumped $2.74, or 3.1%, to $92.65.
Lithium stocks also added to the sector after lithium carbonate prices rose in China. Lithium Americas Corp rose 70 cents, or 10.9% to the top of the TSX at $7.15.
On the economic slate, Statistics Canada reported real gross domestic product was essentially unchanged in December, following two months of growth, despite 14 of 20 sectors increasing in the month.
ON BAYSTREET
The TSX Venture Exchange recovered 5.97 points, or 1.1%, to 560.56.
Eight of the 12 subgroups were in plus column, with gold higher 2.4%, materials and energy up 1%.
The three laggards were consumer discretionary stocks, sliding 0.3%, industrials and consumer staples down 0.2%.
ON WALLSTREET
The S&P 500 ticked higher Thursday as investors digested a key inflation metric that met economist expectations along with fresh U.S. housing numbers.
The Dow Jones Industrials were down 34.23 points Thursday at 38,914.79
The S&P 500 surged 10.33 points to 5,080.09.
The NASDAQ index recovered 72.95 points to 16,020.69.
Data showed the Federal Reserve’s preferred measure of inflation was stubbornly above the central bank’s target in January, but at least didn’t exceed Wall Street forecasts. There were also signs that consumer spending remains robust.
The core personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, increased by increased 0.4% for the month and 2.8% from a year ago. That matches Dow Jones estimates. Headline PCE, which includes food and energy categories, increased 0.3% monthly and 2.4% on a 12-month basis, compared to respective estimates for 0.3% and 2.4%.
Snowflake shed 20% after announcing the retirement of its CEO and sharing disappointing product revenue guidance. Meanwhile, Okta popped nearly 23% on strong results.
Prices for the 10-year Treasury inched forward, lowering yields to 4.23% from Wednesday’s 4.26%. Treasury prices and yields move in opposite directions.
Oil prices faded 48 cents to $78.39 U.S. a barrel.
Gold prices surged $13.70 to $2,056.40.