Toronto stock market spikes, loonie falls following Bank of Canada speech

TORONTO _ Canada’s main stock index soared today as the loonie fell after a speech by the governor of the Bank of Canada that signalled the central bank would be taking a more cautious approach to any future rate hikes.

The S&P/TSX composite index climbed 135.54 points to 15,609.66 on the strength of a broad-based rally.

The Canadian dollar was trading at an average price of 80.57 cents US, down 0.27 of a cent.

In New York, stocks jumped after a report showed business investment climbed in August. Investors also eyed proposed tax cuts by President Donald Trump.

The Dow Jones industrial average was up 56.39 points to 22,340.71. The S&P 500 index added 10.20 points to 2,507.04 and the Nasdaq composite index advanced 73.10 points to 6,453.26.

In commodities, the November crude contract was up 26 cents to US$52.14 per barrel and the November natural gas contract gained six cents to US$3.06 per mmBTU.

The December gold contract was down US$13.90 to US$1,287.80 an ounce and the December copper contract edged up a penny at US$2.93 a pound.