In no hurry to increase interest rates
Canadian shares rose for a second day as solid U.S. economic data raised sentiment and recent comments from the Federal Reserve signaled that the U.S. central bank was in no hurry to increase interest rates.
The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) rose 1.2 percent to 14,451.65 at 12:36 p.m. in Toronto. Three shares advanced for every stock that retreated, with 8 out of 10 major industries rising.
Latest labour-market figures showed strength in the U.S. economy, with the number of jobless claims falling last week and job cuts declining for a second straight month in December. Minutes from a recent policy meeting indicated that Fed members debated how to communicate plans to eventually begin raising interest rates later this year. Sentiment in Canada is often influenced by news out of the United States, Canada's largest trading partner.
The energy sector, the main index's second most heavily weighted group, gained 1.7 percent as oil, Canada’s largest export, was steady. Suncor Energy (TSE:SU), Canada's largest oil sands producer, added 2.2 percent to C$36.07. Canadian Natural Resources (TSE:CNQ), the country's second-largest oil and gas company, added 2.8 percent to C$33.09.
Surge Energy (TSE:SGY) fell 0.3 percent to C$3.05 after the oil and gas producer operating in Alberta and Manitoba said it will adopt a “very conservative” capital spending program for the first half of 2015 and will reduce dividend by half to mitigate cheap crude prices.