Energy, Miners Lead TSX Higher -- Canadian Commentary

(RTTNews) - Rising commodity prices drove gains among energy and mining stocks Wednesday, as the U.S. Federal Reserve said interest rates will rise slower than forecast in 2016.

The Fed kept rates on hold and now see only two rate hikes instead of four this year.

The S&P/TSX Composite Index rose 77.82 points, or 0.58 percent, to 13,478.13, snapping a 2-day losing streak.

West Texas Intermediate oil for April delivery rose $2.12, or 5.8%, to end at $38.46 a barrel, moving back near last week's multi-month highs.

Energy stocks rose 1.4 percent, while mining shares jumped 6 percent as the U.S. dollar weakened.

Valeant Pharmaceuticals stock price target has been cut to $40 from $75 at Canaccord Genuity. Shares fell another 3 percent, having plunged 50 percent earlier in the week on dismal quarterly results.

Stella-Jones (SJ.TO) increased quarterly dividend by 25 percent after reporting a better fourth quarter profit. Shares slipped 1.7 percent.

On the economic front, Statistics Canada reported this morning that Canadian manufacturing sales rose 2.3 percent in January. Economists had been expecting an increase of just 0.5 percent.