TORONTO — The Toronto stock market closed at a record high as traders received reassurances from the U.S. Federal Reserve that it likely won't move on interest rates until 2015.
The S&P/TSX composite index added 53.36 points to 15,109.25, pushed up by gold and material stocks to surpass previous record close set in June 2008, just before the Great Recession. The Canadian dollar rose 0.12 of a cent to 91.17 cents US.
In the U.S., the Fed announced it will reduce its monthly bond buyback program by US$10 billion to US$35 billion a month starting in July, as signs of a recovering U.S. economy continue to emerge. Traders were watching to see if the central bank would give any hints about when it might start raising interest rates, but all it said was that it plans on leaving it low ``for a considerable time'' after it ends its bond purchases.
Most economists think a rate increase is still at least a year away despite recent signs of rising inflation.
On Wall Street, the Dow Jones industrials ran up 98.13 points to 16,906.62, the Nasdaq added 25.60 points to 4,362.84 and the S&P 500 index advanced 14.99 points to 1,956.98.
In Iraq, Islamic militants attacked the country's largest oil refinery after capturing a large swath of territory in northern Iraq in the past week. The July crude contract dropped 39 cents to US$105.97 a barrel. August bullion rose 70 cents to US$1,272.70 an ounce while July copper was unchanged at US$3.06 a pound.
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