The Toronto Stock Exchange opened 600 points higher on Friday morning as news broke that the United States federal government is orchestrating a massive plan to take on toxic assets that have wreaked havoc on the global financial system this year.
At 10:15 a.m., the S&P/TSX composite index was showing a gain of 414.2 points or 12,478.8. The Dow Jones industrial average moved more than 300 points higher to 11,374.1.
Battered financial led the remarkable open in Toronto, as Toronto-Dominion Bank (TD/TSX) rose $5.15 to $64.31. Canadian Imperial Bank of Commerce (CM/TSX) was also sharply higher, rising almost $6 to $65.61.
Gold stocks were also lifted by the broad rise even as gold futures slide to their lowest level in 28 years in New York as investors poured back into equities. Goldcorp (G/TSX) was about $1 higher at $31.61, while Barrick Gold Corp. (ABX/TSX) was 50 cents higher at $32.97.
No sub-indices were left behind, as other commodity stocks also soared. Potash Corp. (POT/TSX) rose over 9% to $182.19, while miner Teck Cominco Ltd. (TCK.B/TSX) rose 4.5% to $36.83.
Technology stock were sharply higher as well. BCE Inc. (BCE/TSX) soared over 8% to $37.45 as RBC Capital Markets upgraded the telecommunication giant's stock as it nears going private. Research in Motion Ltd. rose almost 15% to $110.15 as well.
The price of oil rose above US$100 a barrel on Friday as well, lifting energy giant Encana Corp. over 3% to $73.94. Suncor Energy Inc. was up over 5% to $47.95.
The surge in North American markets follows Asian and European markets in a resounding endorsement of the U.S. government's intervention to calm capital markets.
Both the London FTSE 100 and French CAC 40 surged almost 10%. In Asia, the Nikkei 225 rose sharply, as did the Hang Seng index in Hong Kong.
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