Equities in Canada’s largest market ripped loose Wednesday and explored upward territory it hadn’t seen in months, led by health-care and gold issues.
The S&P/TSX Composite Index ballooned 227.16 points, or 1.5%, to end an exciting Wednesday at 15,171.25
The Canadian dollar rebounded 0.13 cents at 75.34 U.S.
Health-care stocks rode the main float of the parade, primarily cannabis concern Aphria Inc., up $1.01, or 9.8%, to $11.30. Bausch Health Companies gained 68 cents, or 2.3%, to $30.95.
Gold stocks proved the runner-up, with Barrick Gold improving 42 cents, or 2.5%, to $17.35, while Kinross Gold brightened 19 cents, or 5.5%, to $3.62.
In the consumer discretionary section, Canada Goose Holdings soared $3.90, or 4.7%, to $87.47, while Magna International progressed 97 cents, or 1.5%, to $65.11
Another star of the market was Alimentation Couche-Tard, whose stock rose $3.04, or 4.6%, to $68.79. The world's second-biggest convenience store operator beat analysts' earnings expectation as it earned more from improved fuel sales.
Energy stocks let the side down a bit, however, with Canadian Natural Resources shares docking 33 cents, or 1%, to $32.31, while Suncor faded six cents to $43.23.
Communications lost ground, as Rogers Communications withered 86 cents, or 1.2%, to $70.16, while BCE doffed 22 cents to $56.79.
Meantime, a Reuters poll showed investors see value in Toronto's commodity-linked stock market and expect it to rebound in 2019 as the global economy continues to grow on hopes of a recovery in Canadian heavy crude price.
ON BAYSTREET
The TSX Venture Exchange gained 5.8 points, or 1%, to 591.69
All but two 12 subgroups remained positive by the session’s end, with health-care issues leaping 4.6%, gold, better by 2.5%, and consumer discretionary stocks, improving 2.2%.
The two laggards were energy, stumbling 0.3%, and communications, inching back 0.2%.
ON WALLSTREET
Stocks in the United States rocketed on Wednesday after Federal Reserve Chairman Jerome Powell said interest rates are close to neutral, a change in tone from remarks the central bank chief made nearly two months ago.
The Dow Jones Industrial Average leaped 617.7 points, or 2.5%, to 25,198.53, posting its biggest one-day gain since March 26. The 30-stock index also notched its second-best day of the year and is up more than 1,000 points for the week.
The S&P 500 gained 61.61 points, or 2.3%, to 2,743.78, as traders took the comments to mean fewer rate hikes were coming in 2019 that could derail the bull market.
The Dow and S&P are now positive for November after Wednesday's comeback.
The NASDAQ roared into the stratosphere 208.89 points, or 3%, to 7,291.59, to post its best day since Oct. 25.
Tech shares rose broadly on Wednesday, recovering some of their recent steep losses. Amazon and Netflix each gained 6% while Apple and Alphabet rose more than 3.5%. Facebook climbed 1.3%.
Bank stocks shared in the general joviality, as Morgan Stanley, Goldman Sachs and Bank of America all closed more than 2% higher. J.P. Morgan Chase gained 1.1%.
In a speech at the Economic Club of New York, Powell said the current interest rate level is "just below" neutral. "Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth."
Powell's comments were eagerly awaited by investors as they worried the central bank may be tightening monetary policy too quickly. The Fed is largely expected to raise rates by 25 basis points next month. The central bank has already hiked rates three times this year. Traders now see only one more hike fully prices in for 2019.
Easing worries on U.S.-China trade also boosted stocks on Wednesday. A New York Times report said Trump was worried about the impact of a long trade war with China on markets and the economy. This could lead Trump to seek a compromise with China on trade, the Times said, citing U.S. officials.
Prices for the benchmark for the 10-year U.S. Treasury were higher, thus lowering yields to 3.06% from Tuesday’s 3.07%. Treasury prices and yields move in opposite directions.
Oil prices slumped $1.11 to $50.45 U.S. a barrel.
Gold prices recouped $6.80 at $1,220.20 U.S. an ounce.
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