U.S. Fed chairman Ben Bernanke and other members of the Federal Open Market Committee are taking dramatic steps to demystify the institution and its policy-making strategy.Kevin Lamarque/Reuters
North American stock markets opened on the rise Tuesday as investors awaited the meeting statement from the U.S. Federal Reserve.
Sentiment appears to be shifting away from fear of sovereign downgrades in Europe and focusing on economic fundamentals, some market watchers say.
In Toronto, the S&P/TSX gained 74.12 points to 11982.01 in early trading, with energy, financials and industrials leading the pack.
In New York, the Dow Jones Industrial Average rose 111.44 points to 12132.83 and the broader S&P 500 climbed 12.06 points to 1248.53. All sectors were positive, with energy, materials, industrials and even financials showing material advances.
The Fed is expected to confirm and perhaps revise its commitment to keep rates near zero through next year and into 2013. Even though U.S. retail sales data were weaker than hoped, monetary stimulus shifts in Europe and China have many traders thinking that another recession will be avoided.
The price of oil rose by $1.16 (U.S.) to $98.93 a barrel. Gold climbed $1.60 to $1669.80 an ounce. The loonie advanced 0.25 cents to 97.65 cents.