The head office and logo of Valeant Pharmaceutical are pictured in Montreal in this file photo.Ryan Remiorz/The Canadian Press
Canadian stocks rose, following the biggest two-day plunge in 19 months, as Valeant Pharmaceuticals International Inc. headed for a record close while material producers and financial shares advanced.
Valeant gained 2.4 per cent, contributing the most to gains in the benchmark index. Surge Energy Inc. and Pacific Rubiales Energy Corp. each increased at least 5.3 per cent as energy shares fluctuated following a two-day selloff of 7.9 per cent. Iamgold Corp. and Detour Gold Corp. fell at least 1.6 per cent as gold tumbled for the first time this year.
The Standard & Poor's/TSX Composite Index advanced 126 points, or 0.89 per cent, to 14,373.33. The benchmark equity gauge fell 3.4 per cent during the past two days, the most since April 15, 2013.
U.S. markets were also in positive territory Wednesday afternoon, with the S&P 500 up 24.47 points, or 1.22 per cent, to 2,027.08, the Dow Jones Industrials up 201.9 points, or 1.16 per cent, to 17,573.54 and the Nasdaq up 55.24 points, or 1.20 per cent, to 4,647.98.
Seven of the 10 main industries in the S&P/TSX increased as trading volume was 8.9 per cent above the 30-day average at this time of day.
Health-care shares jumped 1.2 per cent to pace gains, while financial shares, which account for about one-third of the index's weighting, added 0.1 per cent.
Energy shares fluctuated after the biggest two-day selloff since 2011. West Texas Intermediate oil futures advanced 0.5 per cent, the first gain in five sessions after dropping below $50 (U.S.) for the first time since April 2009.
The rout in oil prices led to a plunge in Canada's crude shipments in November, triggering the biggest export drop in almost three years and widening the national trade deficit, Statistics Canada said today.
The report is a setback for policy makers relying on foreign demand to lead an economic recovery. Plunging prices for Canada's top export may curb the value of shipments abroad this year, eroding any benefit manufacturers receive from faster U.S. growth and a lower currency.
Minutes from the Federal Reserve's December meeting today at 2 p.m. may provide clues on the timing of an interest-rate increase in the U.S. The central bank pledged to be patient in its approach to raising rates, while Chair Janet Yellen said after that meeting the central bank will probably hold rates near zero through at least the first quarter.