TSX rises as oil boosts energy stocks after Fed
By Alastair Sharp
TORONTO (Reuters) - Canada's main stock index rose on Wednesday as energy companies gained, albeit less than oil prices, as the U.S. dollar plunged after the Federal Reserve cut the number of rate hikes it expects to implement this year.
Gold miners also surged as the precious metal jumped on the Fed news. [GOL/]
U.S. oil prices jumped almost 6 percent, boosted by the Fed's greenback-weakening stance as well as firmer plans from major producers to discuss an output freeze and slower growth in U.S. crude stockpiles. [O/R]
Canada's energy sector rose a more modest 1.5 percent, which Norman Levine, managing director at Portfolio Management Corp, said could be partially explained by a strong recent rally in the stocks.
"Mining stocks and oil stocks have had big runs already, they're up some here, not huge," he said.
The materials sector, which includes precious and base metals miners and fertilizer companies, added 3.6 percent.
The most influential gainers on the index included Canadian Natural Resources (CNQ.TO: Quote), up 2.9 percent to C$36.22, and Suncor Energy Inc SU.TO, which added 1 percent to C$36.12.