TSX hits two-year high as miners gain after Fed

Wed Oct 30, 2013 5:00pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index rose slightly on Wednesday with gold miners marking up strong gains as the U.S. Federal Reserve maintained its support for a stumbling U.S. economy.

The index has jumped sharply in recent weeks and is at a two-year high. In addition to miners, banking stocks have been a solid contributor to the rise, helped by the Bank of Canada's move to drop its explicit rate-hike bias last week.

The Fed maintained its massive bond-buying campaign on Wednesday as it sounded slightly more pessimistic about growth.

With continued loose monetary policy in Canada and the United States likely, and signs of renewed growth in the Chinese economy, investors seem confident that the resource-rich Canadian index can add further gains.

"People are quite confident in the underlying strength in the U.S. economy," said Elvis Picardo, strategist at Global Securities in Vancouver. "It does seem that there is an undercurrent of bullishness building up."

"On the Canadian side we still have a bunch of earnings to look forward to. That should hopefully provide further confirmation that investors are on the right track here."

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 14.72 points, or 0.11 percent, at 13,455.33. It is at levels last seen in July 2011.

Uranium miner Cameco Corp (CCO.TO: Quote) jumped 4.6 percent to C$19.87 after reporting a sharp jump in profit on higher prices and sales.   Continued...

 
A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007.REUTERS/Mark Blinch