Canada Stocks Rise for Fourth Day as Fed Sparks Equities Rally
(Bloomberg) -- Canadian stocks rose for a fourth day, adding to gains sparked by the Federal Reserve’s decision to not raise interest rates amid signs the world’s largest economy is improving.
The S&P/TSX Composite Index rose 0.6 percent to 14,797.17 at 4 p.m. in Toronto, touching the highest level since June 2015 before paring the advance. The index closed at a two week high and is now up almost 14 percent this year.
Financial markets around the world rallied after a decision to leave interest rates unchanged boosted equities and bonds. The dollar fell, fueling a rally in commodities denominated in the U.S. currency from copper to oil. Shares of high-dividend-yielding companies also advanced as investors sought income amid a drop in fixed-income yields.
Energy producers gained 0.9 percent, tracking a rally in oil after Algeria said OPEC may turn its informal talks next week into a formal session. OPEC members are focused on either boosting output or defending their market share, and will have difficulty reaching a deal, according to a Bloomberg survey. Oil edged higher after weekly government data showed U.S. inventories dropped to their lowest level since February. Suncor Energy Inc. and Canadian Natural Resources Ltd. gained at least 1.6 percent. TransCanada Corp. added 1 percent to yesterday’s gains, closing at a record.
Financial-service firms rose 0.7 percent. Bank of Nova Scotia gained 0.5 percent, closing at its highest level in two years. Brookfield Asset Management Inc. rose 3.9 percent, after RBC Capital Markets raised the stock to a top pick, based on the company’s well executed business plan. TMX Group gained 2.7 percent, the most in a month, after eliminating 95 full-time positions in the third quarter and targeting further cost reductions.
Raw-materials producers slipped 0.4 percent. Barrick Gold Corp. and Franco Nevada Corp. fell at least 1.4 percent. Silver Wheaton Corp. dropped 0.9 percent. Copper gained 4.6 percent, and First Quantum Minerals Ltd. closed at a two week high.