Canadian stocks rose to a five-year high as Russian President Vladimir Putin signaled he wouldn’t invade eastern Ukraine and the U.S. reported home construction data that showed the industry was stabilizing.
A false report of explosions at the White House that wiped out $136 billion from the Standard & Poor’s 500 Index in about two minutes highlighted the risks of the computerized trading that dominates the $18 trillion market.
Royal Bank of Canada, the country’s second-largest lender by assets, beat analysts’ estimates after posting a 2.2 percent increase in profit that was helped by lower provisions and credit recoveries. The company raised its dividend 6 percent.
Royal Bank of Canada shares are poised to reach a record high, leading a rally in bank stocks as wealth-management activity boosts profit, say investors such as Baskin Financial Services Inc.’s Barry Schwartz.