Metals, Energy Surges
Equities in
Canada's
beleaguered main stock market rebounded in a big way Friday after five days of losses, led by banks and energy stocks as crude oil prices rallied and after
U.S.
retail sales data offered encouragement about the economic outlook.
The S&P/TSX composite index spiked 239.16 points, or 2%, greet noon at 12,326.53
Still, the index is on track to lose 3.7% for the week, having hit a three-week low on Thursday as disappointing corporate earnings added to broad investor unease about the global economy.
Stock markets will be closed Monday throughout
North America
,
Toronto
for Family Day, and the
U.S.
for Presidents Day.
Cenovus Energy Inc rose 2.9% to $14.36. The oil producer said it may sell up to $5 billion of stock, debt or other securities, a day after it announced a dividend cut, as the company shores up its balance sheet amid a slump in oil prices.
The overall energy group hiked as crude oil prices rallied on prospects of a coordinated production cut. It included a 3.6% rise in the shares of Suncor Energy to $30.49.
The bigger movers on the index were bank stocks, including Royal Bank which rose 2.7% to $66.76, and Toronto-Dominion Bank, which advanced 1.9% to $49.95.
Among the downers on the index, shares in Telus fell 2.7% to $38.61, a day after the telecom company reported a fall in quarterly profit, hurt by increased competition and weaker demand for its wireless services.
Potash Corporation of Saskatchewan slumped 1.9% at $21.40.
ON BAYSTREET
The TSX Venture Exchange advanced 0.8 points to 509.09
All but three of the 13 TSX subgroups were higher by noon, with metals and mining skyrocketing 9.5%, energy up 4.3%, and financials spiking 2.6%.
The three laggards were gold, down 0.5%, utilities, sliding 0.2%, and telecoms, moving lower 0.1%.
ON WALLSTREET
U.S.
equities traded higher on Friday as European and American bank stocks — as well as oil prices — bounced sharply, while investors digested
U.S.
economic data.
The Dow Jones industrial average vaulted 237.4 points, or 1.5%, to 15,897.58, as Goldman Sachs and JPMorgan Chase contributed the most gains.
The S&P 500 jumped 23.72 points, or 1.4%, to 1,854.80, as financials rose 3.5%.
The NASDAQ index advanced 51.87 points, or 1.2%, to 4,318.71, but was on pace to fall about 1% on the week.
Shares of Deutsche Bank rose 11.8% after the bank said it was buying back over $5 billion
U.S.
in bonds, while Commerzbank's stock gained 18% amid a strong earnings report.
Investors also digested
U.S.
retail sales, which rose 0.2% in January, above the 0.1% expected gain. Import prices in the
U.S.
fell 1.1%, less than expected.
Prices for the 10-year Treasury dipped, raising yields to 1.68% from Thursday's 1.65%. Treasury prices and yields move in opposite directions.
Oil prices hiked $1.90 a barrel to $28.11
U.S.
Gold prices waned $7.19 to $1,239.51
U.S.
an ounce.
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