Canada's main stock index extended gains for a second straight session on Tuesday, helped by gains in banks and energy stocks after data showed that consumer inflation in February eased more than expected.
The TSX gathered 195.42 points, or 1%, to open Tuesday at 19,714.85.
The Canadian dollar was static in Tuesday’s first hour at 73.15 cents U.S.
Ritchie Bros Auctioneers said it had completed the acquisition of U.S. auto retailer IAA, weeks after two proxy advisory firms urged shareholders to reject the $7-billion deal. Ritchie shares climbed 73 cents, or 1%, to $73.70.
U.S.-based buyout fund KKR & Co Inc has agreed to sell a 50% stake in Spanish renewable energy company X-Elio Energy to asset manager Brookfield, whose shares rose 70 cents, or 1.8%, to $40.46.
On the economic board, Statistics Canada’s consumer price index rose 5.2% on a year-over-year basis in February, following a 5.9% increase in January. On a seasonally adjusted monthly basis, the CPI rose 0.1% in February.
ON BAYSTREET
The TSX Venture Exchange gained 1.19 points to 608.47.
All but two of the 12 TSX subgroups were on the rise first thing Tuesday, led by health-care, soaring 3.9%, energy, rumbling 3.4%, and financials, richer by 1.6%.
The two laggards were gold, down 3%, and materials, scaling back 1.1%.
ON WALLSTREET
Equities in the U.S. continued on their upward path, building on Monday’s rally. Traders continued to become optimistic following Treasury Secretary Janet Yellen’s latest reassurances to contain the banking crisis.
The Dow Jones Industrials tore out of the starting blocks, gaining 205.43 points to 32,450.01.
The S&P 500 tacked on 28.51 points to 3,980.08.
The NASDAQ Composite jumped 83.85 points to 11,759.39.
Regional banks surged in early trading, led by First Republic. The beaten-down bank jumped 30.7%, a day after losing 47%. Regionals got a boost after Treasury Secretary Janet Yellen said Tuesday morning that the government is ready to provide further guarantees of deposits if the banking crisis worsens.
Investors also welcomed news that JPMorgan Chase could be advising embattled First Republic Bank on strategic alternatives.
Investors now expect a slower pace of tightening from the Federal Reserve in light of the banking crisis. Traders now are pricing in a 83% chance of a quarter-point rate hike when the Fed wraps its two-day policy meeting on Wednesday. The probability of a pause is at 16.6%.
Prices for the 10-year Treasury slid, raising yields to 3.57% from Monday’s 3.49%. Treasury prices and yields move in opposite directions.
Oil prices regained $1.39 to $69.03 U.S. a barrel.
Gold prices stumbled $33.80 to $1,983.30 U.S. an ounce.
