- S&P/TSX equities trading at highest level since end of August
- Fed stands pat amid low inflation, uncertain global growth
Canadian stocks rose for a third day, holding onto gains after the U.S. Federal Reserve opted against raising interest rates amid low inflation and an uncertain outlook for global growth.
Gains among energy producers and health-care stocks led advances. The Fed kept its benchmark federal funds rate at a record low as recent global economic and financial volatility will likely put downward pressure on inflation, policy makers said Thursday in a statement.
The Standard & Poor’s/TSX Composite Index rose 0.2 percent, or 23.38 points, to 13,787.16 at 4 p.m. in Toronto, the highest since Aug. 31. The benchmark equity gauge has pared a loss in September to 0.5 percent after four monthly declines.
“It looks as if rates are still set to start rising this year, however there’ll only likely be one move,” said Andrew Grantham, an economist at CIBC World Markets, in a note to clients. “There were hints that a gradual tightening cycle is close.”
Canadian stocks have rebounded 2.4 percent this week after slumping 4.2 percent in August for the worst performance in a year, amid a rout among global financial markets following China’s shock currency devaluation. China is Canada’s second-largest trading partner after the U.S.
Shopify Inc. soared a record 24 percent after the Canadian software maker teamed up with online retailing giant Amazon.com Inc. to help merchants create their own online stores.
Valeant Pharmaceuticals International Inc. jumped 3.4 percent to the highest in a month high, to lead health-care stocks higher. Valeant has rallied 7.5 percent in three days.
Cenovus Energy Inc. jumped 5.3 percent and Suncor Energy Inc. increased 0.9 percent as crude in New York held near $47 a barrel. West Texas Intermediate oil jumped 5.7 percent Wednesday as U.S. inventories fell.
Toronto-Dominion Bank lost 0.9 percent and Royal Bank of Canada dropped 0.7 percent as financial stocks retreated.