Canada Stocks Climb Most in 6 Months as Energy, Banks AdvanceEric Lam
Canadian stocks rose the most in six months as commodities producers and banks surged and the Federal Reserve policy makers failed to provide a clear signal on when U.S. interest rates will increase.
Suncor Energy Inc. added 4.3 percent, while Bankers Petroleum Ltd. jumped 9.9 percent as oil rose the most in three weeks. Toronto-Dominion Bank and Royal Bank of Canada increased at least 2.7 percent. Torstar Corp., owner of the Toronto Star newspaper, plunged to a 2009 low after earnings missed estimates and it acquired a stake in a digital media company. CGI Group Inc. dropped 3.8 percent after quarterly sales fell short of analyst forecasts.
The Standard & Poor’s/TSX Composite Index rose 224.44 points, or 1.6 percent, to 14,301.80 at 4 p.m. in Toronto, the biggest gain since Jan. 21. The gauge Tuesday snapped the longest run of declines since 2011. The S&P/TSX has slumped 1.7 percent in July, headed for a third monthly decline, the longest such streak since 2012.
The Bloomberg Commodity Index of 22 raw materials added 0.2 percent, after earlier trading near a 13-year low, as oil rallied after U.S. inventory data showed stockpiles unexpectedly declined.
Nine of 10 industries in the S&P/TSX gained on trading volume 22 percent higher than the 30-day average. Energy and financial companies in the index rallied at least 1.8 percent.
Sherritt International Corp. surged 16 percent and Barrick Gold Corp. added 5.2 percent. Teck Resources Ltd. and First Quantum Minerals Ltd. added more than 2.2 percent.
Federal Reserve policy makers said the labor market and housing have improved, inching closer to raising interest rates without providing a clear signal on the timing of any increase.
Bombardier Inc. surged 7.1 percent. Hours after Dow Jones reported Bombardier was in merger discussions with Siemens AG over its rail unit, a company spokeswoman said there were “no talks” of a merger. Bombardier is scheduled to report second-quarter earnings Thursday.