The Toronto stock market was sharply higher Wednesday amid a surprise quarter-point rate cut by the Bank of Canada and increased confidence about what the European Central Bank may deliver in the form of another round of economic stimulus on Thursday.
The S&P/TSX composite index gained 251.98 points, or 1.8%, -- off its highs of the day -- to conclude the session at 14,560.42
The Canadian dollar plummeted 1.47 cents to 81.07 cents U.S., after hitting a six-year low against the greenback on Tuesday.
The central bank's cut to 0.75% from 1% came after the longest period of unchanged rates since 1950. The move was directed partly at preventing financial instability that could result from a vulnerable housing market.
TSX gains were led by a steep rise in the energy sector as Imperial Oil improving $1.26, or 2.8%, to $46.90, while Suncor gushed $1.39, or 4%, to $36.32
Elsewhere on the TSX, the base metals group gained with March copper ahead two cents at $2.61 U.S. a pound. Teck Resources hurtling higher $1.22, or 8.3%, to $15.86.
Most TSX sectors were higher with added support coming from industrials and financials. Bombardier dipped 14 cents, or 5%, however, to $2.66, while Royal Bank grew $1.25, or 1.7%, to $76.66
Telcos declined, with TELUS fading 26 cents to $42.57.
The gold sector was in the green, with Barrick Gold added 53 cents, or 3.5%, to $15.71.
On the economic docket, Statistics Canada reported this morning that wholesale trade ditched 0.3% in November, to $54 billion, following two consecutive monthly gains.
Decreases in three of seven subsectors -- machinery, equipment and supplies -- were partially offset by higher sales in the motor vehicle and parts subsector.
ON BAYSTREET
The TSX Venture Exchange gained 7.48 points to 679.05.
All but two of the 14 Toronto subgroups were higher, with metals and mining popping 5.8%, global base metals going 4.5% north, and energy moving higher 3.1%.
The two laggards were telecoms, down 1.5%, and utilities, off 0.5%.
ON WALLSTREET
U.S. stocks advanced on Wednesday, with Wall Street's volatility unabated, as investors largely adopted the view that the European Central Bank would implement a large-scale bond-purchasing program.
The Dow Jones Industrials ended the day up 39.05 points to 17,554.28, with UnitedHealth leading blue-chip gains that extended to 21 of 30 components.
The S&P 500 gained 9.57 points to 2,032.12, with energy the best performing and all 10 of its major industry groups advancing.
The NASDAQ index marched upward 12.57 points to 4,667.42
UnitedHealth Group rose after posting a better-than-expected fourth-quarter profit.
International Business Machines fell after the Dow component offered a tepid outlook.
Netflix gained after the supplier of streaming videos reported earnings that beat estimates.
Data showed U.S. housing starts climbed more than expected in December in a hopeful sign for the sluggish housing-market recovery.
Multiple news outlets quoted sources in reporting the ECB's executive board had proposed monthly bond purchases of roughly 50 billion euros in a quantitative easing program that would last at least a year.
Prices for 10-year U.S. Treasuries sagged, lifting yields to 1.85% from Tuesday’s 1.81%. Treasury prices and yields move in opposite directions.
Oil prices moved higher $1.21 per barrel to $47.68 U.S.
Gold prices shone brighter by $8.40 an ounce to $1,294.20 U.S.
