Canada’s main index climbed on Thursday, driven by materials-linked stocks, while investors keenly monitored another day of Federal Reserve Chair Jerome Powell’s congressional testimony.
The TSX Composite remained positive 135.03 points to 21,725.99.
The Canadian dollar advanced 0.25 cents at 74.25 cents U.S.
Information technology stocks also rose 1.1%, led by a rise of $6.72, or 5.7%, in Descartes Systems to $124.62, after the software company beat fourth-quarter revenue estimates.
Company-wise, manufacturing firm Linamar popped $7.50 or 11.8%, to the top of the TSX after its fourth-quarter results, at $71.05.
On the economic front, Statistics Canada reported that in January, Canada’s merchandise imports decreased 3.8%, while exports fell 1.7%. As a result, Canada’s merchandise trade balance changed position for a second consecutive month, moving from a deficit of $863 million in December to a surplus of $496 million in January.
Also, January building permits increased 13.5% from December to $10.8 billion.
ON BAYSTREET
The TSX Venture Exchange nicked ahead 1.68 points to 576.59.
All but three of the 12 subgroups gained Thursday morning, with information technology jumping 1.8%, materials stronger 1.2%, and consumer staples surging 1.1%.
The three laggards were communications, down 0.5%, consumer discretionary stocks, falling 0.2%, and health-care, off 0.04%.
ON WALLSTREET
Stocks rose Thursday, as hope over easing inflation and gains in tech helped Wall Street claw back more of this week’s losses.
The Dow Jones Industrials hurtled higher 136.94 points by noon Thursday to 38,897.99.
The S&P 500 gained 48.22 points to 5,152.98, a new all-time high.
Information technology and communication services stocks led the S&P 500 to that record. Intel was the best performer in the Dow with a gain of more than 3%.
The NASDAQ spiked 225.24 points to 16,256.79.
Investor optimism was boosted after the European Central Bank lowered forecasts for annual inflation and growth on Thursday, though the bank also held key interest rates steady. That can be taken as a positive signal on the international inflation front.
The ECB’s announcement comes after Federal Reserve Chair Jerome Powell told Congress on Wednesday that he expects interest rates to come down this year, while noting that the U.S. central bank was not immediately ready to begin cutting. Powell will speak before the Senate Banking Committee on Thursday, the second of his two Capitol Hill appearances this week.
The technology-heavy Nasdaq was helped by a gain of more than 3% in Nvidia, the artificial intelligence darling whose shares have climbed more than 11% this week. Though tech performed well, Apple oscillated around flat in Thursday morning trading, flirting with its seventh straight losing session.
Victoria’s Secret plunged 28% after posting mixed quarterly results and issuing disappointing guidance. On the other hand, U.S.-listed shares of Novo Nordisk popped almost 9% on the back of positive trial results for an obesity treatment.
Shares of New York Community Bancorp rose 6% in volatile trading Thursday morning. The stock tumbled more than 40% during Wednesday’s session, but went on to finish with a 7.5% gain after announcing a $1-billion capital raise.
Investors are also awaiting Friday’s U.S. jobs report for insights into the state of the labor market, which has shown resilience despite higher interest rates.
Prices for the 10-year Treasury sagged, raising yields to 4.12% from Wednesday’s 4.11%. Treasury prices and yields move in opposite directions.
Oil prices stumbled 25 cents to $78.88 U.S. a barrel.
Gold prices progressed $5.60 to $2,163.80.