- Fed to raise rates further in 2016 as economy improves: RBC
- Dominion Diamond surges most in 6 years amid investor pressure
Canadian stocks rose the most in a week as energy producers advanced with the price of crude and Valeant Pharmaceuticals International Inc. increased a second day.
Energy producers rose 0.6 percent as a group, as pipeline operators Enbridge Inc. and TransCanada Corp. increased at least 1.3 percent. Oil futures advanced in New York for the first time in five days, halting a decline near the lowest price in more than six years.
Valeant rallied 4 percent amid a deal with Walgreens Boots Alliance Inc. to repurchase drugs from the U.S. pharmacy operator and sell them on consignment, the Wall Street Journal reported. The stock, briefly the most valuable in Canada earlier this year before plunging amid scrutiny over its pricing practices, has soared 31 percent in December headed for the biggest monthly gain since 1999.
The Standard & Poor’s/TSX Composite Index rose 0.4 percent, or 49.78 points, to 13,084.16 at 4 p.m. in Toronto, the biggest gain since Dec. 16. The Canadian benchmark equity gauge has lost 11 percent this year, the third-worst performing developed market in the world ahead of only Singapore and Greece.
Bank of Montreal and Toronto-Dominion Bank lost at least 0.4 percent. Data on Tuesday showed the U.S. economy grew at a revised 2 percent annualized rate in the third quarter, ahead of market expectations for a 1.9 percent increase, according to the median forecast of economists surveyed by Bloomberg.
The downward revision was “relatively minimal” and is enough of a sign of the economic recovery for the Federal Reserve to continue increasing interest rates into 2016, Paul Ferley, assistant chief economist at RBC Capital Markets, wrote in a note to clients.
Raw-materials and energy producers have plunged at least 21 percent this year. Weekly U.S. inventory and production data Wednesday is expected to show inventories rose by 1.2 million barrels last week, according to a Bloomberg survey.
Dominion Diamond Corp. surged 22 percent, the most in more than six years, after the Canadian mining company hired financial advisers to explore a sale, according to people familiar with the matter. Hedge fund K2 & Associates Investment Management sent a letter to the company’s board Monday requesting a meeting to discuss changes, including a strategic review.