Apple, Fed talk fuel TSX rally
By Claire Sibonney
TORONTO (Reuters) - Canada's main stock index ended sharply higher on Wednesday, as Apple Inc's blowout earnings boosted investor confidence, while the U.S. Federal Reserve reiterated its expectation that interest rates would not rise until late 2014 at the earliest.
Fed Chairman Ben Bernanke said the U.S. central bank "would not hesitate" to launch another round of bond purchases to drive borrowing costs lower if it looked like the economy needed it, triggering many riskier assets to extend gains.
Nearly all of Canada's 10 main sectors were higher, led by weighty resource shares.
Key gainers included Potash Corp (POT.TO: Quote), up nearly 4 percent to C$43.65, Canadian Natural Resources (CNQ.TO: Quote), up 3.4 percent to C$32.37, and Canadian National Railway (CNR.TO: Quote), 1.9 percent higher at C$82.79.
"Anybody who didn't think that Ben Bernanke was going to say what Ben Bernanke was going to say hasn't been listening," said Fred Ketchen, director of equity trading at Scotia McLeod.
"Interest rates aren't going anywhere anytime soon. They still have hurdles to overcome in the United States, they're working away at it, but he says he'll do what he needs to do. I'm not ready to give up on him."
Bernanke also said the U.S. central bank "would not hesitate" to launch another round of bond purchases to drive borrowing costs lower if it looked like the economy needed it.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 130.96 points, or 1.1 percent, to 12,111.06. Continued...