(MENAFN- Baystreet.ca) Canada's main stock index opened sharply higher on Tuesday, as precious metal miners were lifted by gold prices nearing 14-month highs ahead of the U.S. Federal Reserve's two-day monetary policy meeting.
The S&P/TSX Composite Index popped 135.95 points to open Tuesday at 16,489.40
The Canadian dollar nosed higher 0.07 cents to 74.64 cents U.S.
A $1.25-billion program to help young people buy their first homes in a hot housing market will start up on Sept. 2, most likely just before the federal election is called.
RBC initiated coverage on Athabasca Oil with $1.15 price target. Athabasca gained a penny, or 1.4%, to 73 cents.
CIBC raised rating on Canfor Corp. to outperform from neutral. Canfor rocketed 54 cents, or 5.1%, to $11.17.
Canaccord Genuity cut the target price on Medipharm Labs to $7.50 from $8.00. Medipharm shares advanced eight cents, or 1.5%, to $5.36.
On the economic front, Statistics Canada reported that manufacturing sales in this country declined 0.6% to $57.8 billion in April, following a 2.6% increase in March
ON BAYSTREET
The TSX Venture Exchange recouped 3.67 points to 588.29
All 12 Toronto subgroups gained ground, as energy picked up 1.4%, materials improved 1.3%, and health-care strengthened 1%.
ON WALLSTREET
Stocks surged on Tuesday after President Donald Trump said he will be meeting with his Chinese counterpart, Xi Jinping, at the upcoming G-20 summit, boosting hope for a U.S.-China trade deal.
The Dow Jones Industrial Average traveled 292.6 points, or 1.1%, higher to begin Tuesday at 26,405.13, as Apple and Boeing outperformed.
The S&P 500 gained 32.58 points, or 1.1%, at 2,922.25. The S&P 500 also traded within 1% of its all-time intraday high of 2,954.13, which was reached May 1.
The NASDAQ Composite took on 137.34 points, or 1.8%, to 7,982.37
Boeing rose 1.5%, and Caterpillar shares picked up 3.1%.Both are trade bellwethers. Deere shares also gained more than 3%. Semiconductor stocks jumped on Trump's tweet, led by 4% gains from Nvidia and Micron Technology.
Stocks also got a boost as investors bet the Federal Reserve will set the stage for more accommodative monetary policy at this week's meeting.
The Fed's decision is scheduled to be announced Wednesday at 2 p.m. ET.
Trump said in a tweet he 'had a very good telephone conversation ' with Xi. He added: 'We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.' The summit will start on June 28.
Prices for the benchmark 10-year U.S. Treasury gained, driving down yields to 2.07% from Monday's 2.09%. Treasury prices and yields move in opposite directions.
Oil prices hiked $1.22 to $53.29 U.S. a barrel.
Gold prices ballooned $3.60 at $1,346.50 U.S. an ounce.
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