Canada’s main stock index hit over one-week highs on Tuesday, joining a rebound in global equities as Treasury yields eased on the back of dovish comments from U.S. Federal Reserve officials.
The TSX Composite surged 296.01 points, or 1.5%, by noon to 19,542.08. The index looked set to clock its biggest percentage gain in nearly a month.
The Canadian dollar tailed off 0.07 cents at 73.55 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 $1.41, or 3.4%, to $43.16.
The TSX Venture Exchange hiked 5.14 points, or 1%, to pause for lunch at 538.68.
All but one of the 12 TSX subgroups were higher, with energy gushing 4.1%, gold brighter 2.2%, and materials mightier 2.1%.
The lone holdout was in health-care, eking down 0.1%.
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 leaped 231.87 points, midday Tuesday to 33,836,52.
The S&P 500 index acquired 45.57 points, or 1.1%, to 4,381.19.
The NASDAQ index hiked 166.62 points, or 1.2%, to 13,650.86.
Hamas’ attack against Israel marks the deadliest offensive in 50 years. The death toll from the ongoing violence between Israel and Hamas has passed 1,500, with over 900 killed and 2,600 injured in Israel and at least 687 people killed and 3,700 injured in Gaza, according to latest figures from Palestinian and Israeli health services. 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 1.4% after the beverage and snack maker reported better-than-expected third-quarter results and raised its earnings outlook. Several energy and industrial names continued their stretch into the green on Tuesday, with Enphase Energy and Generac Holdings both trading above 5%.
Prices for the 10-year Treasury popped, lowering yields to 4.63% from Monday’s 4.77%. Treasury prices and yields move in opposite directions.
Oil prices skidded 75 cents to $85.63 U.S. a barrel.
Gold prices leaped $9.10 to $1,873.40.