Canadian shares advanced, halting a three-day slump, as data showed that the U.S. economy grew more than previously forecast and after Federal Reserve Chair Janet Yellen said she expects interest rates to be raised this year, easing concerns about slowing global growth.
The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) gained 0.8% to 13,445.58 at 11:51 a.m. in Toronto. Two shares advanced for every issue that declined as eight out of ten share groups were in positive territory.
The U.S. economy expanded at a 3.9% annualized rate in the second quarter revised from a prior estimate of 3.7%, boosted by gains in consumer spending and construction, according to a government report.
Yellen said she and other policymakers do not expect recent global economic and financial market developments to significantly affect the central bank's policy.
Financials, the index's most heavily weighted sector, rose 1.8%. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, gained 1.1% to C$72.10. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, added 1.3% to C$51.67.
The energy sector, the main index's second most heavily weighted group, inched up 0.4% as oil, Canada’s largest export, rises.
Suncor Energy (TSE:SU), Canada's largest oil sands producer, tacked on 1.6% to C$35.04. Canadian Natural Resources Limited (TSE:CNQ), Canada’s second-largest energy producer, inched up 0.1% to C$25.97.
November West Texas Intermediate crude traded at $46.12 a barrel, up 2.7%.
The materials sub-index, which includes mining shares, fell 0.5% as gold fell from one-month highs. Goldcorp (TSE:G), Canada’s largest gold miner by market value, inched up 0.1% to C$17.99. Barrick Gold (TSE:ABX), Canada’s second-largest gold miner, skidded 0.5% to C$8.68.
Silver Wheaton (TSE:SLW) fell 1.5% to C$16.41 as the world’s largest precious-metals finance firm said it has received notices of reassessment from Revenue Canada for its 2005 to 2010 tax years and said the agency is seeking a total of C$353mln in tax, interest and penalties from the company. Silver Wheaton said it plans to file a notice of objection.
U.S. gold futures for December delivery were down $6.90 an ounce at $1,146.90.
BlackBerry (TSE:BB) tumbled 4.4% to C$8.95 after the handset maker missed already low expectations for its second quarter.
Vecima Networks (TSE:VCM) jumped 6.1% to $10.50 after the networking-equipment company said it has increased its quarterly dividend 22% to 5.5 Canadian cents a share.
Concordia Healthcare (TSE:CXR) sank 5.1% to C$84.25 after the health care company priced an offering of 8 million shares at $65 each, to raise $520 million.