Positive news extends gains
Loonie slips as Bank of Canada keeps key rate unchanged at 1%
TORONTO — Stock markets advanced Wednesday, building on the gains of the previous session amid rising optimism that China’s growth targets will be met and data showing the American economy is slowly recovering. The S&P/TSX composite index gained 95.92 points to 12,831.96 and the TSX Venture Exchange dipped -2.49 points to 1,109.74.
The Canadian dollar fell 0.33 of a cent to 96.95 cents US after the Bank of Canada kept its key rate unchanged at one per cent and indicated that persistent economic weakness and low inflation means a hike is a long ways off.
Positive employment data helped push U.S. indexes mainly higher a day after the Dow Jones industrial average hit a record high close of 14,254 — its highest level since early October 2007.
Payroll firm ADP said the private sector created 198,000 jobs last month. The data came out two days ahead of the U.S. government’s employment report for February. Economists have been expecting that report to show the economy created about 155,000 jobs.
The Federal Reserve’s latest economic survey also supported buyers on Wednesday.
The central bank’s so-called Beige Book said the U.S. economy expanded in all parts of the country in January and February, helped by strong auto sales, a continued recovery in housing and improved job prospects.
The Dow Jones industrial average gained 42.47 points to 14,296.24. The Nasdaq composite index was down 1.77 points to 3,222.36 while the S&P 500 index advanced 1.71 points to 1,541.5. The gold sector was ahead about 2.75 per cent as April bullion closed unchanged at US$1,574.90 an ounce. Goldcorp Inc. improved by $1.18 to $34.08.
The base metals component was up 1.9 per cent. The May copper contract in New York was down two cents at $3.49 US a pound. Teck Resources was up 80 cents to $31.33.
The energy sector rose about 0.9 per cent while the April crude contract on the New York Mercantile Exchange declined $1.01 to $89.81 US a barrel after the U.S. Energy Information Administration reported that crude supplies climbed by 3.8 million barrels last week, much higher than the 1.1 million-barrel climb that analysts expected.