Canada’s benchmark stock index extended gains for a second-straight session on Tuesday to its highest in a week, helped by gains in energy and financial shares, after data showed consumer inflation in February had eased more than expected.
The TSX leaped 135.49 points, to adjourn Tuesday’s session at 19,654.92.
The Canadian dollar slid 0.24 to 72.91 cents U.S.
Cannabis issues provided the spark Tuesday, as Tilray surged 29 cents, or 8.6%, to $3.66, while Canopy Growth gained 20 cents, or 7.9%, to $2.72.
In energy concerns, Precision Drilling skyrocketed $5.97, or 9.5%, to $68.79, while Crescent Point Energy climbed 65 cents, or 7.9%, to $8.84.
Tech issues excelled as well, with HUT 8 Mining acquiring 23 cents, or 9.1%, to $2.75, while Lightspeed Commerce traveled $1.12, or 5.6%, higher, to $21.13.
Gold, however, faded in luster, as Eldorado Gold backpedaled 63 cents, or 4.6%, to $13.09, while Iamgold lost 14 cents, or 4%, to $3.34.
In utilities, Canadian Utilities ducked 77 cents, or 2.1%, to $36.00, while Fortis subsided $1.47, or 2.6%, to $55.98.
Materials also lost some of their mojo, as First Majestic Silver stumbled $2.28, or 22.4%, to $7.90, while Endeavour Silver docked 25 cents, or 5.3%, to $4.50.
On the economic board, Statistics Canada’s consumer price index rose 5.2% on a year-over-year basis in February, following a 5.9% increase in January. On a seasonally adjusted monthly basis, the CPI rose 0.1% in February.
The TSX Venture Exchange finished ahead 1.55 points to 608.83.
The 12 TSX subgroups were evenly split between gainers and losers, health-care surging 4.5%, energy better by 3.5%, and information technology moving up 1.7%.
The half-dozen laggards were weighed most by gold, slipping 2.5%, utilities, falling 1.1%, and materials backpedaling 1%.
Stocks rose on Tuesday as traders became optimistic on the financial sector’s outlook following Treasury Secretary Janet Yellen’s reassurances to safeguard against further banking crises. Wall Street marked its second day of gains ahead of the Federal Reserve’s announcement on interest rates Wednesday.
The Dow Jones Industrials kept the momentum going, rocketing 316.02 points, or 1%, to 32,560.60.
The S&P 500 leaped 51.31 points, or 1.3%, to 4,002.87.
The NASDAQ Composite hiked 184.57 points, or 1.6%, to 11,860.11.
Regional banks surged Tuesday, led by First Republic. The beaten-down bank jumped 34.8%, a day after losing 47%. Regionals got a boost after Treasury Secretary Janet Yellen said Tuesday morning that the government is ready to provide further guarantees of deposits if the banking crisis worsens.
Wall Street is coming off a strong rally, with the Dow surging more than 380 points Monday, while the S&P 500 gained 0.9%. The action came a day after a forced takeover of Credit Suisse by UBS, which was engineered by the Swiss government. Investors also welcomed news that JPMorgan Chase could be advising embattled First Republic Bank on strategic alternatives.
Investors now expect a slower pace of tightening from the Federal Reserve in light of the banking crisis. Traders now are pricing in a 83% chance of a quarter-point rate hike when the Fed wraps its two-day policy meeting on Wednesday. The probability of a pause is at 16.6%.
Prices for the 10-year Treasury slid, raising yields to 3.60% from Monday’s 3.49%. Treasury prices and yields move in opposite directions.
Oil prices regained $1.86 to $69.50 U.S. a barrel.
Gold prices stumbled $39.40 to $1,943.40 U.S. an ounce.