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Canada’s main stock index rose slightly on Thursday as better corporate earnings helped the market recover from the biggest one-day decline in three years on Wednesday.

The Toronto Stock Exchange’s S&P/TSX composite index unofficially finished up 14.95 points, or 0.1 per cent, at 14,924.08.

Eight of the index’s 11 major sectors were higher, led by a 1.7-per-cent rise in energy stocks.

Crescent Point Energy Corp. jumped 17.4 per cent following the release of better-than-anticipated quarterly results. Seven Generations Energy Ltd. rose 4.7 per cent, while Encana Corp. was up 3.5 per cent.

The financials sector gained 0.5 per cent, including a 1.4-per-cent increase in Bank of Nova Scotia.

The materials sector, which includes precious and base metals miners and fertilizer companies, fell 3.1 per cent.

Goldcorp fell 18.4 per cent after the gold producer posted a bigger-than-expected loss in third quarter. Teck Resources Ltd. closed down 7.7 per cent, while Kinross Gold Corp. lost 6.1 per cent.

U.S. stocks followed Europe higher on Thursday as investors ventured into risky bets again with some encouragement from earnings and the dollar rose against the euro after remarks from Europe’s Central Bank chief committed to stimulus withdrawal despite market volatility and worries about global growth.

Oil prices regained ground as stocks rebounded and as Saudi Arabia’s energy minister signaled major producers may need to intervene in crude markets to support prices.

The greenback rose against the euro. The ECB’s Mario Draghi reaffirmed that its 2.6-trillion euro ($2.97 trillion) asset purchase program will end this year and interest rates could rise after next summer even though the economic outlook has darkened and political turmoil looms in Italy.

While equity investors were reassured by positive earnings and stronger technology stocks, they also voiced some caution about whether the broader pullback was over.

“The main reason we’re up was that yesterday was a big day of selling,” said Stephen Massocca, Senior Vice President at Wedbush Securities in San Francisco who also cited strong earnings from companies such as Microsoft Corp and strong advertising revenues from Twitter Inc.

The odds are that the sell-off “took enough wind out for us to set sail again,” he said but “it doesn’t mean we’re going to race right back to the September highs.”

Google-parent Alphabet and were among the top boosters of the S&P ahead of their results later.

The Dow Jones Industrial Average rose 400.93 points, or 1.63 per cent, to 24,984.35, the S&P 500 gained 49.5 points, or 1.86 per cent, to 2,705.6 and the Nasdaq Composite added 209.94 points, or 2.95 per cent, to 7,318.34.

Microsoft jumped 6.3 per cent after it beat consensus estimates for revenue and profit. That, along with gains in chipmakers, helped technology stocks rise almost 3 per cent.

Stocks extended their gains as the session wore on even after the new Federal Reserve vice chair, Richard Clarida, said he’d support “some further” increase in interest rates as the best way to nurse the current U.S. recovery along while guarding against any jump in inflation.

During its trading day, the pan-European STOXX 600 had darted in and out of positive territory before closing up 0.51 per cent while the MSCI’s gauge of stocks across the globe gained 1.06 per cent.

The dollar index rose 0.27 percent, with the euro down 0.28 per cent to $1.1359.

Draghi said he was confident the European Commission and Rome would come to a compromise over Italy’s budget plans, but the euro reversed earlier gains after he said the monetary union remained fragile.

Currency dealers were also unwinding Swiss franc and Japanese yen safety trades and Italian and Spanish bonds held their ground as Draghi reiterated the European Central Bank’s plans to carefully remove its stimulus.

The Japanese yen weakened 0.30 percent versus the greenback at 112.61 per dollar, while Sterling was last trading at $1.282, down 0.47 per cent on the day.

MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.1 per cent lower, while Japan’s Nikkei lost 3.72 percent.

Investors were also eyeing mixed U.S. economic data.

New applications for U.S. unemployment aid rose last week, but the number of Americans receiving benefits fell to more than a 45-year low, pointing to tightening labor market conditions.

But new orders for key U.S.-made capital goods fell for a second straight month in September and the goods trade deficit increased further amid rising imports, suggesting economic growth moderated in the third quarter.

Benchmark 10-year Treasuries last fell 4/32 in price to yield 3.1393 percent, from 3.124 percent late on Wednesday.

U.S. crude rose 0.75 per cent to $67.32 per barrel and Brent was last at $76.93, up 1 percent on the day.

Spot gold dropped 0.4 per cent to $1,228.31 an ounce due to the strong dollar and the equities rebound.


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