Canadian stocks snapped a two-day loss to end sharply higher Thursday, led by mining, financial, and energy stocks, while tracking rising global equity markets amid some upbeat, better than expected initial jobless claims and retail sales data from the U.S.
Even as investor sentiments improved after the positive economic data, concerns still lingered of a possible tapering of U.S. quantitative easing, ahead of the Federal Reserve's next policy meet due June 18-19. Another jarring note on economic growth came from the World Bank after it lowered its growth forecast for the global economy, with deeper-than-expected recession in the euro area and muted growth in developing countries.
The World Bank in its June edition of the Global Economic Prospects, indicated the world economy to grow 2.2 percent this year, decelerating from the 2.3 percent expansion in 2012. The projection was weaker than the January forecast for a 2.4 percent expansion. The growth is expected to strengthen to 3 percent in 2014 while the January report predicted growth of 3.1 percent. The growth outlook for 2015 was kept unchanged at 3.3 percent.
The S&P/TSX Composite Index closed Thursday at 12,277.13, up 167.24 points or 1.38 percent. The index touched an intraday high of 12,291.16 and a low of 12,032.42. The Index shed nearly 300 points or over 2 percent in the past two trading sessions.
All sub-indices of the S&P/TSX Composite Index ended in positive territory.
The Global Gold Index gained 0.35 percent, although gold futures for August delivery dropped $14.20 or 1.0 percent to close at $1,377.80 an ounce Thursday on the Nymex.
The Capped Materials Index moved up 0.77 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) adding 0.51 percent.
Among gold stocks, Yamana Gold Inc. (YRI.TO) gained 0.35 percent, while Goldcorp Inc. (G.TO) moved up 0.94 percent. IAMGOLD Corp. (IMG.TO) shed 0.56 percent, while Barrick Gold Corp. (ABX.TO) dropped 0.84 percent. Kinross Gold Corp. (K.TO) gathered 1.83 percent.
The Diversified Metals & Mining Index surged 2.88 percent, with First Quantum Minerals Ltd. (FM.TO) up 2.34 percent, Osisko Mining Corp. (OSK.TO) shed 0.69 percent, and Teck Resources Limited (TCK_B.TO) gathered 2.87 percent.
Base metals mining company Lundin Mining Corp. (LUN.TO) surged 8.79 percent after indicating it will buy the Eagle nickel and copper mine in the U.S. from Anglo-Australian mining giant Rio Tinto plc for about $325 million. The transaction is expected to be completed in July 2013.
The Energy Index gathered 1.00 percent, with U.S. crude oil futures for July delivery gaining $0.81 or 0.8 percent to close at $96.69 a barrel Thursday on the Nymex.
Among energy stocks, Suncor Energy Inc. (SU.TO) gained 1.36 percent, while Canadian Natural Resources Limited (CNQ.TO) moved up 1.66 percent. Enbridge Inc. (ENB.TO) gathered 1.78 percent, while Talisman Energy Inc. (TLM.TO) gained 1.46 percent. Encana Corp. (ECA.TO) edged up 0.11 percent.
Niko Resources (NKO.TO) surged 9.33 percent after raising its proved reserves estimate by 160 percent.
The Financial Index gained a significant 1.56 percent with Manulife Financial Corp. (MFC.TO) moved up 1.01 percent, National Bank of Canada (NA.TO) gained 0.85 percent, Bank of Nova Scotia (BNS.TO) climbed 1.35 percent, and Bank of Montreal (BMO.TO) climbed 1.32 percent. Royal Bank of Canada (RY.TO) gained 2.59 percent, while The Toronto-Dominion Bank (TD) jumped 1.76 percent.
The Information Technology Index soared 2.88 percent, with BlackBerry (BB.TO) surged nearly 6 percent.
The Capped Industrials Index added 0.86 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) up 2.36 percent. Air Canada (AC.B.TO) gained 1.24 percent.
Travel operator Transat A.T. Inc. (TRZ_A.TO, TRZ_B.TO) jumped 13.58 percent after reporting a wider second quarter loss of C$22.76 million or C$0.59 per share compared to the year-ago period.
In economic news Statistics Canada said the New Housing Price Index rose 0.2 percent in April, following a 0.1 percent increase in March. On a year-over-year basis, the NHPI rose 2.0 percent in the 12 months to April, following a similar increase the previous month.
In economic news from the U.S., the Labor Department said initial jobless claims fell to 334,000, a decrease of 12,000 from the previous week's unrevised figure of 346,000. The modest decrease came as a surprise to economists, who had been expecting initial jobless claims to edge up to 350,000.
Simultaneously, the U.S. Commerce Department said retail sales increased by 0.6 percent in May after edging up by 0.1 percent in April. The sales growth came in just above economist estimates for a 0.5 percent increase. Excluding a 1.8 percent jump in sales by motor vehicle and parts dealers, retail sales increased by a more modest 0.3 percent in May compared to expectations for 0.4 percent growth.
Business inventories in the U.S. rose in line with economist estimates in April, a Commerce Department report showed Thursday. Business inventories increased by 0.3 percent in April compared to a revised 0.1 percent decrease in March. The modest rebound were in line with economists expectations. Retail inventories rose by 0.4 percent, while inventories at both manufacturers and merchant wholesalers edged up by 0.2 percent.
From the euro zone, Germany's wholesale prices declined for the second consecutive month in May on lower cost of gaseous fuels, Destatis reported. Wholesale prices dropped unexpectedly by 0.1 percent from a year ago, after easing 0.4 percent in April. Economists had forecast a 0.2 percent rise for May.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.