Canada’s main stock index rose at open on Tuesday as treasury yields eased after dovish comments from Federal Reserve officials, while losses in healthcare stocks capped gains.
The TSX Composite surged 196.33 points, or 1%, to begin a short week at 19,442.40.
The Canadian dollar tailed off 0.11 cents at 73.52 cents U.S.
Markets in Canada were closed Monday for Thanksgiving Day.
Investors got some respite after top ranking Fed officials indicated that rising yields on long-term U.S. Treasury bonds could steer the central bank from further increases in its short-term policy rate.
In corporate news, Brookfield received authorization from Australia’s competition regulator for its $15.35-billion acquisition of power producer Origin Energy. Brookfield shares jumped 58 cents, or 1.4%, to $42.33.
The TSX Venture Exchange picked up 3.49 points to start Tuesday at 537.03.
All but one of the 12 TSX subgroups were higher, with energy gushing 3.4%, gold brighter 2.2%, and materials mightier 1.8%.
The lone holdout was in health-care, descending 1%.
U.S. stocks rose Tuesday, boosted by a drop in Treasury yields as Wall Street assessed the geopolitical risks of a protracted conflict from the Israel-Hamas war.
The Dow Jones Industrials rocketed 166.82 points, to start Tuesday at 33,771.47.
The S&P 500 index acquired 26.01 points to 4,361.67.
The NASDAQ index hiked 80.25 points to 13,564.49.
Hamas’ attack against Israel marks the deadliest offensive in 50 years. At least 900 people in Israel have been killed thus far in what Hamas is calling Operation Al Aqsa Flood, with more than 687 people in Gaza and the West Bank dead in retaliatory Israeli strikes across the Gaza Strip, according to the latest figures. Hamas is a designated terrorist group backed by Iran that has governed the Gaza Strip since 2007.
Investors may also be looking past the geopolitical risks caused by the conflict, helped by Friday’s stronger-than-expected September payrolls report and optimism ahead of a slew of third-quarter earnings this week.
PepsiCo shares rose about 0.7% after the beverage and snack maker reported better-than-expected third-quarter results. The company also raised its earnings outlook.
Prices for the 10-year Treasury popped, lowering yields to 4.68% from Monday’s 4.77%. Treasury prices and yields move in opposite directions.
Oil prices skidded 78 cents to $85.60 U.S. a barrel.
Gold prices leaped $6.50 to $1,870.80.