(Reuters) - Canada’s main stock index rose on Thursday as news of a potential monetary stimulus initiative in Europe and higher oil prices supported gains in every major sector.
The European Central Bank said it would be open to more interest rate cuts in order to stimulate the economy.
Investors were also weighing the start of earnings reporting season with results from companies including Teck Resources TCKb.TO and Rogers Communications (RCIb.TO). However, Valeant Pharmaceuticals International Inc (VRX.TO) continued to fall, losing 6.6 percent to C$144.05, following a sharp decline in the previous session.
An influential short-seller on Wednesday accused the company of using specialty pharmacies to inflate its revenue, which the drugmaker denied.
But the energy sector helped keep Bay Street stocks in positive territory, rising 1.9 percent as the price of oil recovered as investors re-thought data that showed falling stockpiles of fuel products.
Financial stocks also buoyed the market, rising 1.2 percent. The energy and financial sectors were the two biggest influences on the index.
“It’s been a big turnaround in sentiment,” said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver, who said he was concerned about the market’s dependence on stimulus moves.
“Even if the markets may grind their way higher, you can expect a great deal of volatility in the months ahead,” he added. The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 173.92 points, or 1.27 percent, at 13,878.11. All of the 10 main sectors on the index were higher. Teck Resources TCKb.TO advanced 5.1 percent to C$8.79. Excluding a non-cash write-down, the company reported earnings that were better than expected.
Shares of Rogers Communications (RCIb.TO) rose to their highest level since April 2013 after the company reported a surprise jump in third-quarter profit. Rogers was up 5.2 percent at C$52.17.
With Brent crude up nearly 1 percent, Canadian Natural Resources Ltd (CNQ.TO) climbed 2.4 percent to C$31.16.
Reporting by Leah Schnurr and John Tilak; Editing by Diane Craft