Canada Stocks Gain Amid ECB Plans as Energy Shares Jump With Oil

Updated on
  • Global equities climb as Draghi expands stimulus steps
  • Canadian exports gain in July as trade deficit narrowed

Canada stocks climbed, joining gains in equities around the world after the European Central Bank revamped its quantitative-easing program and pledged to use all tools to bolster growth.
Canadian shares advanced 0.4 percent at 4 p.m. in Toronto, paring an earlier advance of as much as 1.2 percent as anxiety about the U.S. government’s jobs report offset stimulus optimism. Energy and financial-services stocks led gains. The Standard & Poor’s/TSX Composite Index has recovered 0.9 percent in two days, after a 2.7 percent rout on Tuesday.

A global equity gauge of developed and developing markets rose 0.5 percent as volatile Chinese markets will remain closed for the rest of the week while the country celebrates the 70th anniversary of Japan’s defeat at the end of World War II.

Exports from Canada surged for a second month in July, led by increases in motor vehicle shipments, aircraft-related sales and consumer goods. Energy product exports declined. The nation’s trade deficit narrowed to C$593 million, the lowest since November 2014. Data earlier in the week indicated Canada’s economy had contracted a second straight quarter, meeting the definition of a technical recession.

ECB President Mario Draghi increased the purchase limit of a country’s debt stock, allowing officials to buy higher proportions of each euro area member’s debt. European Central Bank officials also cut forecasts for economic growth and inflation, due to the emerging-market rout.

Gold prices tumbled 0.8 percent, the most in a week, to $1,124.50 an ounce in New York as demand for the metal as an alternative asset declined. Goldcorp Inc. retreated 3.6 percent.

The S&P/TSX rose 51.16 points to 13,596.41 at 4 p.m. in Toronto, paring a weekly decline to 1.9 percent. The equity gauge has dropped 7.1 percent in 2015.

Canadian Western Bank fell 2.5 percent, after reporting third-quarter earnings. Bank of Nova Scotia and Royal Bank of Canada, among the nation’s largest lenders, increased at least 0.9 percent.

Energy producers rose 0.5 percent as a group, halting a two-day slide. TransCanada Corp. rose 1.1 percent. Oil traded above $51 in London and West Texas Intermediate crude added 1.1 percent to $46.75. Oil has fluctuated this week after capping the biggest three-day rally in 25 years on Monday.

China, Canada’s second-largest trading partner, is shutting down its exchanges and banks until Monday to commemorate the 70th anniversary of Japan’s World War II defeat, giving investors a breather from the volatility that has engulfed Chinese markets and the rest of the world.

First Quantum Minerals Ltd. advanced 3.4 percent for a second day of gains as copper hit a three-week high to lead an advance in base metals. Teck Resources Ltd. added 2.3 percent.

The resource-rich S&P/TSX has been one of the worst-performing developed markets in the world this year as crude plunged. Energy and raw-materials producers have the biggest declines among 10 industries in the S&P/TSX this year.

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