Toronto stocks moved higher Tuesday, as energy stocks surged. North American markets also reacted to the U.S. Federal Reserve’s decision to end its streak of interest rate hikes.
The S&P/TSX composite index advanced 61.50, or 0.52%, to 11,988.18. The senior exchange was closed yesterday for the August civic holiday.
The U.S. central bank elected to hold rates, putting an end to a run of 17 consecutive quarter-point hikes. The wording of the announcement, however, left room for a resumption of the hikes if inflationary pressures persisted.
Six of the 10 TSX main sub-groups were up. The energy index gained 1.71% despite a drop in the price of oil.
The September contract for light sweet crude ended 67¢ lower at US$76.31 a barrel.
EnCana Corp. moved up $1.28, or 2.13%, to $61.38.
The materials index was down 0.18%, while the gold sub-sector was up 0.27%.
The December contract for gold closed up $2.20 at US$657.30 an ounce.
Yamana Gold Inc. gained 31¢, or 2.53%, to $12.56.
The Canadian dollar move up 0.53 of a cent as it closed at US89.16¢.
The S&P/TSX Venture Exchange index lost 12.47, or 0.47%, to 2,634.15.
In New York, markets were down as investors reacted to the wording of the Fed’s interest rate announcement.
The Dow Jones Industrial Average ended down 45.79 points at 11,173.59.
The S&P500 finished down 4.29 points at 1,271.48 and the Nasdaq moved down 11.65 points at 2,060.85.
TSX on verge of reaching 12,000
But the Fed’s interest rate decision drives U.S. markets down
- By: Rudy Mezzetta
- August 8, 2006 August 8, 2006
- 16:07