Stocks in Toronto rose more than 1% by noon on Wednesday as higher oil prices boosted shares of energy companies and investors bought back into banks after the initial shock of Britain's vote to exit the European Union.
The S&P/TSX Composite vaulted 211.63 points, or 1.5%, to greet noon at 14,054.32, after a 150-point surge Tuesday.
The Canadian dollar gained 0.15 cents to 76.92 cents U.S.
Markets will be closed in Canada on Friday for Canada Day
Canada’s biggest banks were the stars of the show Wednesday, as Royal Bank of Canada up 0.6% to $76.83 and Bank of Nova Scotia advancing 0.7% to $64.22.
But Canadian Imperial Bank of Commerce fell 3.6% to $96.83 after it said it would buy Chicago-based PrivateBancorp Inc in a cash-and-stock deal valued at about $3.8 billion.
Energy stocks climbed as a potential strike in Norway and falling production in Venezuela supported oil prices and traders moved money back into the market as the initial shock of Britain's EU exit vote wore off.
Suncor Energy gained 1.1% to $35.31 and Canadian Natural Resources added 2% to $39.08.
Canadian National Railway advanced 1.2% to $75.88, as part of an overall surge by industrials
Empire Co., owner of the Sobeys supermarket chain, fell 8.6% to $19.83 after its earnings disappointed, weighing on consumer staples.
ON BAYSTREET
The TSX Venture Exchange prospered 11.24 points to reach noon at 718.49
All but one of the 13 subgroups were higher midday, with metals and mining roaring ahead 4.7%, while energy up 3%, and gold shining 2.9% brighter
The lone laggard was in consumer staples, lower by 0.2%.
ON WALLSTREET
U.S. stocks traded 1% higher Wednesday, helped by gains in oil prices, as global markets continued to recover from their post-Brexit plunge.
The Dow Jones Industrials hiked 236.41 points, or 1.4%, to 17,646.13, with Chevron and Boeing contributing the most to gains as all member stocks rose.
The S&P 500 climbed 30.52 points, or 1.5%, at 2,066.59. Energy and materials were among the top S&P 500 advancers as all sectors rose in late-morning trade. The index and held above its 200-day moving average.
Both the Dow and S&P swung back into positive territory for 2016 in morning trade as the major averages recovered about half of their losses from the post Brexit selloff.
The NASDAQ Composite Index jumped 79.94 points, or 1.7%, to 4,771.81,
In U.S. economic news, pending home sales fell a more-than-expected 3.7% in May from the prior month, for a 0.2% year-over-year decline and the first annual drop in two years.
Consumer spending rose 0.4% in May. Personal income increased 0.2%
The Fed's preferred inflation measure of personal consumption expenditures price ex-food and energy rose 0.2% last month, or 1.6% over the 12 months through May.
U.S. crude oil futures extended gains to trade more than 2.5% higher after weekly crude inventories from the Energy Information Administration showed a greater-than-expected drawdown of 4.05 million barrels. Late Tuesday, the American Petroleum Institute reported a greater-than-expected drawdown of 3.9 million barrels.
Prices for the 10-year Treasury were lower, raising yields to 1.47% from Tuesday’s 1.46%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.29 a barrel to $49.14 U.S.
Gold prices gained $11.20 to $1,329.10 U.S. an ounce.
