Canadian stocks were extending gains for a fourth session Wednesday morning amid buoying in metal stocks. Traders await anxiously for Federal Reserve Chairman Ben Bernanke to testify on the outlook for the U.S. economy before the Joint Economic Committee of Congress. Nonetheless, comments from two Federal Reserve officials suggested the Fed is unlikely to taper its $85 billion-per-month bond-buying program anytime soon and helping stocks to sustain recent gains.
The S&P/TSX Composite Index rose 72.12 points or 0.57 percent to 12, 814.55, after adding nearly 300 points or just over 2 percent in the past three sessions.
The Diversified Materials Index rose nearly 3 percent, with Teck Resources (TCK_B.TO) jumping about 4 percent and First Quantum Minerals (FM.TO) adding over 2 percent.
Cameroon focused iron ore miner Afferro Mining (AFF.L, AFF.V) jumped 22 percent after it said it would be acquired by International Mining & Infrastructure Corporation plc (IMIC.L) for 80 pence in cash, plus a 2-year convertible loan note with principal value of 40 pence for each share of Afferro.
Gold stocks were moving higher amid a rebound in bullion prices. The price of gold was moving higher Wednesday morning, supported by physical demand as the yellow metal dived to a fresh two-year low last week. Gold for June delivery added $2.10 to $1,379.70 an ounce.
In the gold space, Alamos Gold (AGI.TO) was up nearly 6 percent, while Agnico-Eagle Mines (AEM.TO) was gathering about 5 percent. Royal Go;d (RGL.TO) and Goldcorp. (G.TO) gained around 3 percent each.
Latest data from the EIA revealed that US crude oil inventories eased 0.30 million barrels, while gasoline stocks were up 3.00 million barrels in the weekended may 17. Analysts expected crude oil inventories to dip 1.2 million barrels last week. Crude for July delivery shed $1.30 to $94.88 a barrel.
In the oil patch, Husky Energy (HSE.TO) was up about 3 percent, while Canadian Oil Sands Ltd (COS.TO) shed close to 2 percent.
Multi-channel retailer Sears Canada Inc. (SCC.TO) slipped into the red in first quarter, reporting net loss of C$31.2 million or C$0.31 per share compared to net earnings of C$93.1 million or C$0.91 per share during the same quarter last year. Excluding the gain from lease terminations, the company's net loss was C$44.9 million for last year. The stock was up over 1 percent.
Independent, full-service investment dealer Canaccord Financial (CF.TO) lost over 3 percent despite reporting improved fourth-quarter net income of C$17.5 million or C$0.14 per share compared to C$11.2 million or C$0.02 per share in the comparable quarter last year. Adjusted income came in at C$15.6 million or C$0.12 per share compared to C$2.1 million or C$0.02 per share in the prior-year quarter. Analysts expected loss of C$0.09 per share for the quarter.
In economic news, Statistics Canada said retail sales were little changed at $39.5 billion in March However, removing the effects of price changes, particularly lower gasoline prices, retail sales in volume terms rose 0.7 percent.
From the U.S., the National Association of Realtors said existing home sales climbed 0.6 percent to a seasonally adjusted annual rate of 4.97 million in April from an upwardly revised 4.94 million in March. Economists had been expecting existing home sales to rise to an annual rate of 5.0 million from the 4.92 million originally reported for the previous month.
Elsewhere, the euro area current account surplus surged to EUR 25.9 billion in March largely due to an increase in trade surplus, the European Central Bank reported. The current account surplus amounted to EUR 14.6 billion in February. The trade in goods totaled EUR 21.8 billion, up sharply from EUR 11.5 billion a month ago. However, the surplus on trade in services fell to EUR 7.6 billion from EUR 8.4 billion.
Meanwhile, retail sales in the UK declined unexpectedly in April, the latest figures from the Office for National Statistics showed. Retail sales volume, including auto fuel, fell 1.3 percent month-on-month in April against forecast for a 0.1 percent increase. Sales, excluding fuel, dropped 1.4 percent compared with an expected 0.1 percent growth.
Elsewhere, the call for additional stimulus by Bank of England chief Mervyn King was overturned by other policymakers for the fourth consecutive month, minutes showed. As seen in previous months, King, Paul Fisher and David Miles sought an increase in quantitative easing by GBP 25 billion to GBP 400 billion.
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