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TSX Ends Higher For 3rd Straight Day

The Canadian stock market ended notably higher on Wednesday, extending gains to a third successive session, as positive cues from Wall Street and European markets after U.S. midterm election results came in line with expectations aided sentiment and pushed share prices higher.

In the U.S. midterm elections, Democrats seized the House majority from President Donald Trump's Republican Party, a development that would give them power to investigate Trump and help shape the nation's political agenda for the next two years.

Republicans retained control of the Senate, implying that the White House will still have the upper hand on getting key appointments approved.

Healthcare and information technology shares were in demand. Consumer staples and telecommunications shares were among the other prominent gainers. Shares from industrials and utilities sections moved up as well, while energy, materials and financial stocks ended on a mixed note.

The benchmark S&P/TSX Composite Index ended with a gain of 76.72 points, or o.5% at 15,369.43. The index scaled a low of 15,293.25 and a high of 15,392.00 in the session.

The Capped Healthcare Index climbed up 4.73%. Aurora Cannabis Inc. (ACB.TO) gained nearly 9%, Canopy Growth Corporation (WEED.TO) jumped by about 8%, Aphria Inc. (APHA.TO) surged up 3.75%, Extendicare Inc. (EXE.TO) added 2.5% and Knight Therapeutics Inc. (GUD.TO) advanced by 1.5%.

The Capped Information Technology Index gained 2.5%. Shopify Inc. (SHOP.TO) ended with a gain of about 4.75%, CGI Group Inc. (GIB.A.TO) climbed up 3%, BlackBerry (BB.TO) gained about 2%, Constellation Software Inc. (CSU.TO) gained 1.85%, Open Text Corporation (OTEX.TO) advanced by 1.7% and Kinaxis Inc. (KXS.TO) gained 1.6%.

Among bank stocks, Royal Bank of Canada (RY.TO) gained about 0.4%, while others ended little changed from previous closing prices.

The Capped Consumer Staples Index climbed up 1.7% up. Alimentation Couche-Tard Inc. (ATD.B.TO), Loblaw Companies (L.TO), Metro Inc. (MRU.TO), Saputo Inc. (SAP.TO), Empire Company (EMP.A.TO) and Maple Leaf Foods Inc. (MFI.TO) gained 1 to 3%.

The Capped Telecommunications Index gained 1.04%. BCE Inc. (BCE.TO), Shaw Communications Inc. (SJR.B.TO), Cineplex Inc. (CGX.TO) and Cogeco Communications Inc. (CCA.TO) gained between 1 and 2%, while Rogers Communications Inc. (RCI.B.TO) ended nearly 1% up.

Among top energy stocks, Suncor Energy (SU. To) gained 2.3%, ARC Resources (ARX.TO) advanced by 1.6% and Cenovus Energy Inc. (CVE.TO) added 1.35%, while Canadian Natural Resources (CNQ.TO) declined by 2.2% and Tourmaline Oil Corp. (TOU.TO) eased by 2.1%,

Imperial Oil (IMO.TO) ended down 1.6%. The company announced that it will go ahead with its $2.6-billion Aspen oilsands project. Construction will begin this year, with the project expected to start up in 2022, the company said. The Aspen project, located about 45 kilometres northeast of Fort McMurray, Alta., is expected to produce about 75,000 barrels of bitumen per day.

In the materials space, Teck Resources (TECK.B.TO) gained 3.3%, First Quantum Minerals (FM.TO) ended higher by 1.8% and Methanex Corporation (MX.TO) gained 4.8%. Barrick Gold Corporation (ABX.TO) declined by 1.5% and Wheaton Precious Metals Corp. (WPM.TO) ended 1.3% down, while CCL Industries Inc. (CCL.B.TO) declined sharply by 5.8% despite reporting a slightly higher net earnings for the third quarter.

Canadian Pacific Railway (CP.TO) has announced that it delivered record shipments of grain and biofuels in October. The stock gained about 1%.

Spin Master Corp. (TOY.TO) shares declined by 1.8% after the company reported adjusted net income of US$117.7 million, or US$1.16 per share, for the third quarter, compared to US$111.7 million, or US$1.10 per share, in the year-ago quarter.

Asian markets ended mixed on Wednesday even as European markets moved higher, reacting to the U.S. midterm election results that came in line with expectations.

In Eurozone economic news, the euro area retail sales were unchanged in September after growing in the previous month, Germany's industrial production unexpectedly rose for a second straight month in September, construction activity in Germany declined in October, falling for the first time since March and UK house price inflation eased sharply.

The U.S. market ended on an upbeat note, reacting to midterm election results. The major averages ended the day just off their highs of the session. The Dow surged up 545.29 points or 2.1%, the Nasdaq soared 194.79 points or 2.6% and the S&P 500 climbed up 58.44 points or 2.1%, as investors indulged in hectic buying across the board.

Markets now await the Federal Reserve's monetary policy announcement. The Fed is widely expected to leave interest rates unchanged, but traders will keep a close eye on the accompanying statement for clues about an expected rate hike in December.

In commodities, crude oil futures for December ended down $0.54, or 0.9%, at $61.67 a barrel, the lowest settlement price in nearly eight months, after data from EIA showed crude stockpiles in the U.S. to have risen for a seventh successive week.

Gold futures for December rose to $1,237.40 an ounce before settling for the session at $1,228.70, gaining $2.40, or 0.2%.

Silver futures for December ended up $0.069, at $14.569 an ounce, while Copper futures for December closed at $2.7545 per pound, gaining $0.0220 for the session.

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