Canada Stocks Rise as Commodities Rally Amid Stimulus Optimism
Canadian stocks rose as commodities from oil to gold rallied amid optimism over central-bank stimulus and data showed U.S. consumer spending climbed more than expected in March.
Capstone Mining Corp. (CS) added 3.1 percent after agreeing to buy a copper mine in Arizona from BHP Billiton Ltd. Valeant Pharmaceuticals International Inc. (VRX) gained 4.3 percent amid reports the drugmaker is in talks to merge with Actavis Inc. Gabriel Resources Ltd. and Kirkland Lake Gold Inc. surged at least 4.2 percent as gold rallied to pare the worst monthly loss since December 2011.
The Standard & Poor’s/TSX Composite Index (SPTSX) rose 59.42 points, or 0.5 percent, to 12,279.62 at 9:55 a.m. in Toronto. The benchmark equity gauge has fallen 3.7 percent in April and is headed for the biggest monthly decline since May 2012.
Crude and gold prices advanced on optimism that central banks will decide to maintain economic stimulus in their meetings this week to bolster growth. Economists surveyed by Bloomberg said European Central Bank policy makers may cut interest rates, while the U.S. Federal Reserve will consider renewing its commitment to bond-buying at a two-day meeting starting tomorrow.
Consumer spending in the U.S., the biggest oil-consuming nation, rose more than projected in March, a Commerce Department report showed today.
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