Equities in Canada’s largest centre opened higher on Tuesday after data showed the economy grew at a record pace in the third quarter and as drug makers sought swift approval of their COVID-19 vaccines.
The TSX vaulted 231.33 points, or 1.4%, to open Tuesday and the final month of the year at 17,421.58.
The Canadian dollar edged up 0.14 cents to 77.10 cents U.S.
Bank of Nova Scotia and Bank of Montreal beat analysts’ estimates for fourth-quarter profit as they set aside less funds than expected to cover potential loan losses due to the COVID-19 pandemic.
Scotiabank shares jumped $1.66, or 2.6%, to $64.86.
Shares in “The First Canadian Bank” popped $3.85, or 4.1%, to $97.18.
On the macroeconomic front, Canada’s budget deficit is forecast to hit an historic $381.6 billion on COVID-19 emergency aid, with the federal government eyeing $100 billion in stimulus to be rolled out once the virus is under control.
Elsewhere, Statistics Canada reported real gross domestic product grew 0.8% in September as 16 of 20 industrial sectors were up in the month
Markit Canada’s monthly manufacturing Purchasing Managers Index registered 55.8 in November, up slightly from 55.5 in October, signaling another robust expansion in business conditions.
The agency said its index has now posted above the 50.0 no-change threshold in each month since July.
The TSX Venture Exchange jumped 9.01 points, or 1.2%, to begin Tuesday at 759.43.
All but two of the 12 TSX subgroups recovered from Monday’s negative vibes, with energy up 2.8%, gold ahead 2.6%, and materials bustling 2.4%.
The two laggards were health-care, fading 0.8%, while communications dipped 0.01%.
U.S. stocks jumped on Tuesday, with the Dow Jones Industrial Average kicking off December by adding to its historic rally from November.
The 30-stock index boomeranged back to positive country 343.47 points, or 1.2%, at 29,982.11.
Chevron and UnitedHealth rose more than 2% each to lead the Dow higher.
The S&P 500 regrouped 47.7 points, or 1.3%, to 3,669.33. Energy was among the best-performing sectors, rising 2.5%, as financials soared 1.6%,
The NASDAQ grew 137.11 points, or 1.1%, to 12,336.11.
The Dow rallied 11.8% in November, posting its best one-month performance since January 1987. The S&P 500 hiked 10.8% and the NASDAQ rose11.8%, , for their strongest monthly advances since April. After November’s gain, the S&P 500 is up 12.1% for 2020.
Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin are speaking before Congress this week. Powell called the U.S. economic outlook “extraordinarily uncertain” in prepared remarks to be delivered Tuesday.
Tesla’s shares popped 3.6% after S&P Dow Jones Indices said on Monday night the electric-car maker will be added to the S&P 500 on Dec. 21 in a single step despite its large size. The index provider had considered adding the $500 billion stock in multiple phases.
Shares of Zoom Video fell 11.6% despite the video-conferencing giant reporting better-than-expected earnings for the third quarter.
Prices for the 10-Year Treasury fell hard, driving yields up to 0.91% from Monday’s 0.85%. Treasury prices and yields move in opposite directions.
Oil prices dipped 49 cents to $44.85 U.S. a barrel.
Gold prices regained $30.00 to $1,810.90 U.S.