Canada's main stock index rose Thursday as investors took in a raft of corporate earnings and as resource-related shares benefited from a rise in commodity prices.
At 11:26 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 109.68 points, or 0.71 per cent, at 15,633.28.
Magna International Inc. provided one of the biggest boosts to the index, rising 3 per cent to $71.69 a share after the auto parts maker's quarterly results were lifted by higher sales in Europe and the launch of new cars for BMW and Jaguar.
Canadian Imperial Bank of Commerce rose 0.6 per cent to $117.07 a share after its quarterly results topped expectations on a strong performance in all business units and an expansion in the United States.
Overall, the financial sector erased a small early loss, sitting 0.4 per cent higher. National Bank of Canada climbed 1 per cent to $63.19, while Toronto-Dominion Bank rose 0.6 per cent to $73.78.
The energy group climbed 2.5 per cent as U.S. crude prices rose after a surprise decline in inventories. Encana Corp. jumped 4 per cent to $13.98, while Canadian Natural Resources Ltd. was up 3 per cent to $40.63.
A gain in spot gold prices also boosted the resource sector by 1.2 per cent, with shares of Teck Resources Ltd. up 2.6 per cent at $37.76 a share.
Among other companies that reported results, SNC-Lavalin advanced 3.6 per cent to $55.32 a share after its profit topped expectations and the company gave a strong forecast for 2018.
On the downside, Loblaw Cos Ltd. declined 1.1 per cent to $64.62 a share following its quarterly report.
Gains in technology and industrial shares helped U.S. stocks rebound from a two-day fall on Thursday as investors shrugged off the prospects of more interest rate hikes this year.
Minutes of the Federal Reserve's latest meeting showed on Wednesday that the policymakers were more confident in the need to keep raising rates, with most believing inflation would perk up.
However, comments from St Louis Fed President James Bullard earlier in the day appeared to have eased some of those concerns and the benchmark 10-year U.S. Treasury yields retreated from the more than four-year highs they hit on Wednesday.
Mr. Bullard told CNBC on Thursday that central bankers need to be careful not to increase interest rates too quickly this year because that could slow the economy too much.
Wall Street's fear gauge, the CBOE Volatility index, was at 18.58. The index had jumped above 21 points after the release of minutes.
"Yesterday was overdone. Clearly we have a major market reversal and today investors are more comfortable with the likelihood of three rate hikes and not four," said John Lynch, chief investment strategist at LPL Financial in Charlotte, NC.
Despite Fed's hawkish views, bets on the U.S. short-term interest rate futures continued to reflect expectations of three rate hikes this year, based on a Reuters analysis.
Traders also gave a 94-per-cent chance that the first hike would come in March.
"In spite of what we experienced with a return to volatility a couple of weeks ago, we can still see firming economic and profit growth and that is something investors will need to maintain their focus on," Lynch said.
Economic data showed U.S. jobless claims fell more than expected to a near 45-year low last week.
The Dow Jones Industrial Average had gained 1.02 per cent to 25,050.5, driven by gains in United Technologies, Boeing and 3M.
United Technologies rose 3.2 per cent after its chief executive said the company was exploring a breakup of its business portfolio.
The S&P 500 was up 0.75 per cent at 2,721.61 and the Nasdaq Composite rose 0.64 per cent to 7,264.69. Both the indexes benefited from gains in Amazon, Apple, Microsoft and Facebook.
All the 11 major S&P sectors were higher, led by a more than 2-per-cent rise in the energy index.
Chesapeake Energy was the top gainer on the index, jumping 19 per cent, after the company reported upbeat quarterly profit.
Pandora Media fell 7.6 per cent after multiple brokerages slashed their price targets on the internet radio company's stock following results.