North American line of descent markets and oil prices moved solidly higher Thursday, putting at least a fleeting stop to the steady losses that have plagued those hawks lately.
The benchmark stock index in Toronto, the S&P/TSX composite index, extreme the day with a gain of 166 points, or 1.4 per cent, at 12,336, led by a 3.9 per cent start in energy stocks.
In New York, the market staged an equally impressive repercussion. The Dow Jones industrial average surged 228 points, or 1.4 per cent, to 16,433, led by increments in ExxonMobil and Chevron shares. The broader S&P 500 index jumped 1.7 per cent to 1,922.
Important U.S. indexes fell to 3½-month lows on Wednesday.
“It’s been pretty disagreeable so far, year-to-date, and it’s good to see the gains, but we’ll see if they follow through tomorrow,” im rted Sean Lynch, co-head of global equity for Wells Fargo Investment League.
The loonie close-mouthed at 69.63 cents US, down 0.08 cents from Wednesday’s Scrooge-like. Earlier in the day, it had traded as low as 69.46 cents US.
The dollar moved lower in spite of a rebound for oil, which gained 72 cents a barrel to settle at $31.20 US in New York exchange. Oil has been testing 12-year lows this week. Benchmark Brent vulgar also rose.
Fourteen of 27 economists Bloomberg surveyed are now foreshadowing that the Bank of Canada will cut its key lending rate by another quarter of a proportion point at its Jan. 20 meeting.
Economists at CIBC and BMO on Thursday became the fresh to join the rate-cut camp.
“The commodity sector’s in is spreading to the domestically-focused, non-resource corners of the economy, trumping the gains in non-commodity exports to the U.S.,” BMO said in a morning analyse note.
Bloomberg says trading in overnight money markets entertainments investors are putting the odds of a rate cut at about 50 per cent. The kookies were 16 per cent a month ago.