Canada’s main stock index closed higher on Thursday as shares of precious metal miners and health care stocks, whcih includes marijuana companies, gained on the back of rising gold prices.
The Toronto Stock Exchange’s S&P/TSX composite index was up 56.05 points, or 0.36 per cent, at 15,540.60.
Gold prices were steady on Thursday, having earlier hit their highest in nine months, after the U.S. Federal Reserve kept interest rates steady and said it would be patient on further hikes, keeping bullion on track for a fourth straight monthly gain. Spot gold was unchanged at US$1,320.01 per ounce. The session high was US$1,326.30, the highest since April 26.
Spot gold has gained nearly 3 per cent so far this month. U.S. gold futures settled up 0.7 per cent to US$1,319.70.
The Fed held U.S. interest rates steady on Wednesday but said it would be patient in lifting borrowing costs further this year as it pointed to rising uncertainty about the economic outlook.
Gains in the precious metal pushed the materials sector up 1.4 per cent. The sector includes precious and base metals miners and fertilizer companies. Ivanhoe Mines rose 9.2 per cent, First Quantam gained 6.9 per cent and Wheaton Precious Metals gained 3 per cent.
Eldorado Gold Corp., which jumped 27.5 per cent after its decision to resume mining and heap leaching at Kisladag.
Health care stocks rose 2.75 per cent as Aphria gained 13.5 per cent, Cronos Group rose 6.5 per cent and Aurora gained 2.4 per cent.
Wall Street extended its rally on Thursday, but the Dow finished slightly lower, as strong earnings from Facebook Inc. added to optimism after the Federal Reserve’s dovish remarks the previous day, while investors waited for the outcome of U.S.-China trade talks.
The Dow Jones Industrial Average fell 15.19 points, or 0.06 per cent, to 24,999.67, the S&P 500 gained 23.65 points, or 0.88 per cent, to 2,704.7 and the Nasdaq Composite added 98.66 points, or 1.37 per cent, to 7,281.74.
Global equity markets mostly rose on Thursday, propelled by Facebook’s upbeat earnings and the Federal Reserve’s pledge to be patient in raising borrowing costs further, while U.S. bond yields fell on indications of weaker-than-expected inflation.
Brent oil prices, an international benchmark, rose for a third day, extending a rally this month as an output cut by the Organization of the Petroleum Exporting Countries, Russia and others took effect. U.S. oil pared gains to close lower.
MSCI’s gauge of global stock performance and an emerging markets index rose, as did the Nasdaq and S&P 500 on Wall Street, propelled by an 11.5-per-cent gain by Facebook after its quarterly results topped analysts’ estimates.
European shares closed mostly flat and the Dow fell on a downbeat report by DowDuPont Inc, as investors awaited news about the U.S.-China trade talks in Washington.
U.S. and Chinese officials made “some progress” in addressing differences over intellectual property rights and market access issues, but gaps exist in other structural issues, U.S. Chamber of Commerce officials briefed on trade talks said.
The Fed’s dovish stance on monetary policy eased concerns that tightening financial conditions could crimp growth.
“It seems as if most of the fears have been taken away except for trade,” said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey.
E-commerce behemoth Amazon was the other big focus, with it set to report results after the closing bell. Its results beat Wall Street expectations as it reported fourth-quarter profit of US$3.03-billion or US$6.04 per share. The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of US$5.55 per share.
MSCI’s gauge of stocks across the globe rose 0.81 per cent, on track to its best January on record, and its emerging market index gained 1.25 per cent.
European shares ended a choppy session flat as disappointing economic data, including a technical recession in Italy, sapped an early boost provided by the Fed’s dovish tone.
German retail sales fell at the fastest rate in 11 years, British car production posted its biggest drop since 2009 and euro zone growth was the slowest in four years.
The STOXX 600 ended the day up 0.04 per cent but gained 6.1 per cent in January, its strongest month since October 2015.
The FTSEurofirst 300 index of leading European shares closed up 0.23 per cent, with oil heavyweights Royal Dutch Shell, BP and Total among top gainers.
The dollar index rose 0.25 per cent, with the euro down 0.3 per cent to $1.1442. The Japanese yen firmed 0.15 percent versus the greenback at 108.89 per dollar.
The Employment Cost Index, the broadest measure of U.S. labour costs, rose 0.7 per cent in the fourth quarter after an unrevised 0.8-per-cent gain the previous quarter, the Labor Department said.
The data continued a pattern of low inflation.
Two-year U.S. Treasury debt yields, which reflect expectations of interest rate hikes, fell to a nearly four-week low of 2.49 per cent.
“What you’ve seen the last couple days with the market is the Street’s reaction to recognition that cheap money is going to continue for the foreseeable future,” said Brian Ward, chief executive of Trimont Real Estate Advisors in Atlanta.
The 10-year U.S. Treasury note rose 14/32 in price to push its yield down to 2.6453 per cent.
U.S. West Texas Intermediate (WTI) crude futures fell 44 cents to settle at $53.79 per barrel. Brent crude oil futures rose 24 cents to settle at $61.89.
Reuters