Canada’s main stock index jumped higher at open on Thursday as a rise in commodity prices lifted materials and energy stocks, while hotter-than-expected U.S. economic data did not dent hopes of a pause in rate hikes in September.
The TSX zoomed 174.5 points to open Thursday at 20,453.44.
The Canadian dollar regained 0.2 cents at 73.97 cents U.S.
Resource stocks led the charge in Thursday’s first hour, with Capstone Mining picking up 18 cents, or 3.1%, to $6.03, while MAG Silver climbed 62 cents, or 4.3%, to $14.99. In gold, Alamos Gold captured 17 cents, or 1.1%, to $16.43, while Kinross Gold triumphed nine cents, or 1.4%, to $6.78.
Energy stocks prospered, too, with Tamarack Valley Energy increasing 13 cents, or 3.3%, to $4.03, while Meg Energy advanced 56 cents, or 2.2%, to $25.94.
On the economic schedule, Statistics Canada said wholesale trade (excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain) grew 0.2% to $81.3 billion in July.
ON BAYSTREET
The TSX Venture Exchange surged 3.82 points to 586.72.
All 12 TSX subgroups were positive, with materials climbing 1.5%, gold, up 1.3%, and energy rumbling 1%.
ON WALLSTREET
The Dow Jones Industrial average gained for the first day in three after August retail sales came in better than expected and another inflation reading was not as bad as feared.
The 30-stock index sprang up 124.89 points to open Thursday at 34,700.42.
The S&P 500 index gained 13.22 points to 4,480.66.
The NASDAQ index acquired 9.76 points to 13,823.34.
The August reading of the producer price index came in hotter than expected. It rose 0.7%, more than the 0.4% increase anticipated by economists polled by Dow Jones. However, excluding food and energy, core PPI increased 0.2%, in line with the estimate.
That comes after August’s consumer price index on Wednesday showed core CPI, which excludes food and energy, was slightly hotter than expected.
August retail sales came in better than expected, jumping 0.6% against a 0.1% increase expected by economists. Excluding autos, retail sales rose 0.6% last month, more than the forecasted 0.4% increase.
Elsewhere, Adobe is expected to post quarterly results after the market close Thursday.
Prices for the 10-year Treasury dropped, raising yields to 4.29% from Wednesday’s 4.25%. Treasury prices and yields move in opposite directions.
Oil prices added $1.39 to $89.91 U.S. a barrel.
Gold prices faded $9.70 to $1,922.80 U.S. an ounce.
