Canada Stocks Rise From 3-Month Low as Gold Rallies on Fed ViewEric Lam
Canadian stocks rebounded from a three-month low as gold producers rallied after the price of the metal jumped the most in five weeks.
Torex Gold Resources Inc. climbed 5.6 percent as gold rose above $1,200 an ounce after the Federal Reserve signaled interest-rate hikes will be gradual. Trilogy Energy Corp. and Birchcliff Energy Ltd. lost at least 3.3 percent to pace declines among energy companies. Bombardier Inc. increased 2.5 percent to rebound from two days of losses.
The Standard & Poor’s/TSX Composite Index rose 37.66 points, or 0.3 percent, to 14,770.64 at 4 p.m. in Toronto. The gauge has advanced 0.9 percent this year, among the worst-performers in developed markets in the world.
Eight of 10 industries in the benchmark index advanced on trading volume 6.5 percent below the 30-day average. BlackBerry Ltd. led technology shares lower, while TransCanada Corp. lost 0.4 percent and Suncor Energy Inc. slipped 1.3 percent as energy producers declined.
Bombardier paced gains in industrial shares, rebounding 2.5 percent after a two-day slide of 8 percent. The aircraft manufacturer signed a five-year heavy maintenance pact with Mesa Air Group Inc. after being shut out of order at the Paris Air Show on the second day of the event.
Goldcorp Inc. increased 1.8 percent and Agnico Eagle Mines Ltd. gained 3 percent as gold increased. The Bloomberg Dollar Spot Index slipped to a one-month low after the Fed on Wednesday cut its longer-term projections for U.S. borrowing costs.
Investors are also watching developments in Europe. Euro-area leaders will hold an emergency summit in Brussels on Monday to discuss Greece after finance ministers failed to reach an agreement today.
Eurogroup chief Jeroen Dijsselbloem said it’s “unthinkable” Greece will receive any financial aid before June 30, when its bailout agreement expires and the country has to pay about 1.5 billion euros ($1.7 billion) to the International Monetary Fund.
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