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Canada’s main index opened higher on Thursday as financial stocks gained following Bank of Canada chief’s positive comments on the economy and rising oil prices boosted energy shares

The Toronto Stock Exchange’s S&P/TSX Composite Index rose 40.41 points, or 0.26 per cent, to 15,550.16.

The Canadian dollar strengthened slightly against its U.S. counterpart on Thursday as oil prices climbed and domestic data showed rising employee earnings.

The price of oil, one of Canada’s major exports, was supported by expectations of renewed U.S. sanctions on Iran, declining output in Venezuela and continuing strong demand.

U.S. crude prices were up 0.6 per cent at $68.45 a barrel.

Canadian average weekly earnings of non-farm payroll employees rose 3.4 percent in February from the same month last year, led by the accommodations and food services sectors, Statistic Canada said.

Bank of Canada Governor Stephen Poloz has said that he expects wages to pick up as job vacancies continue to grow and for more people to be then encouraged to enter the workforce.

On Wednesday, Mr. Poloz said the economy was “finally positive” after a long adjustment to a sharp fall in oil prices, but he added there was still softness in several areas of the country.

The Canadian dollar was trading 0.1 per cent higher at 1.2831 to the greenback, or 77.94 U.S. cents.

The currency traded in a narrow range of $1.2823 to $1.2864. On Wednesday, the loonie touched $1.2897, its weakest in more than three weeks.

Wall Street stocks opened higher on Thursday as U.S. bond yields pulled back from the 3-per-cent level, and a jump in Facebook’s shares after strong results helped the Nasdaq rise more than 1 per-cent.

The Dow Jones Industrial Average rose 44.89 points, or 0.19 per cent, at the open to 24,128.72. The S&P 500 opened higher by 12.25 points, or 0.46 per cent, at 2,651.65. The Nasdaq Composite gained 76.75 points, or 1.10 per cent, to 7,080.49 at the opening bell.

Facebook jumped 8.3 per cent in early trading after the social networking company reported a 63-per-cent surge in first-quarter profit and a rise in users. There was no sign that business was hurt by a scandal over the mishandling of personal data, which unfolded in mid-March.

Visa rose 2.3 per cent after the world’s largest payments network topped Wall Street targets for quarterly profit and raised its full-year earnings forecast.

Advanced Micro Devices was up 2.9 per cent after posting quarterly results that beat Wall Street estimates, easing concerns about weak demand for smartphones after some Asian peers warned of slower growth.

Intel, set to report after market closes on Thursday, was up 1.8 per cent.

“We are right in the thick of earnings season and some of them have been a bit of a surprise,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

Despite strong results from most U.S. firms that have reported so far, investors have been reacting to signs that rising inflation could take a toll on corporate profits.

The 10-year U.S. Treasury yield, the benchmark for global borrowing costs, crossed the 3-per-cent level on Tuesday for the first time in four years, on an increase in federal borrowing, inflation concerns and bets on further rate increases by the Federal Reserve.

But the 10-year yield retreated slightly from 3 percent before markets opened.

“A slight pullback in yields is likely to give investors a chance to focus on corporate results,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 27/03/24 6:40pm EDT.

SymbolName% changeLast
INTC-Q
Intel Corp
+4.24%43.77
AMD-Q
Adv Micro Devices
+0.97%179.59
SCHW-N
The Charles Schwab Corp
+1.94%72.38

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