Canadian Stocks Rally On Energy Bounce -- Canadian Commentary

(RTTNews) - Energy stocks led Toronto's main index sharply higher on Wednesday, with a surprising drop in US crude oil inventories sparking the Santa Claus rally.

The S&P/TSX Composite Index was up 202.05 points to 13,284.91, a third day of gains in a row.

West Texas Intermediate crude for February delivery rose $1.36, or 3.8%, to end at $37.50 a barrel, rising from recent 6-year lows below $35.

The Energy Index jumped 5.7 percent, and gauges of all major sectors were higher.

The U.S. Energy Information Administration said crude inventories fell by 5.9 million barrels in the week ended Aug. 18.

Analysts were expecting a small build, but stockpiles fell from record highs.

A disappointing reading on Canada's October GDP was mostly ignored.

The economy unexpectedly flatlined in October, raising speculation the Bank of Canada will soon lower interest rates from 0.5 percent.

In corporate news, Norfolk Southern Corp. rejected Canadian Pacific Railway Ltd.'s (CP.TO) latest buyout bid. CP shares rose 1 percent.