TORONTO - Stock markets surged on the back of a huge runup in bank and insurance companies after American banking giant Citigroup Inc. said it was profitable for the first two months of this year.
Toronto's S&P/TSX composite index ran ahead 313.47 points or 4.1 per cent to 7,880.41, powered by a 12 per cent charge in the financial sector. It was the TSX's biggest gain so far this year.
New York's Dow Jones industrial average jumped 379.44 points or 5.8 per cent to 6,926.49 . The Nasdaq composite index climbed 89.64 points or seven per cent to 1,358.28.
Citigroup CEO Vikram Pandit said in a letter to employees that the first-quarter performance so far has been the bank's best since the last time it recorded net income for a full quarter -- that was in the July-September period in 2007.
Based on historical revenue and expense rates, Citi's projected earnings before taxes and one-time charges would be about US$8.3 billion for the full quarter.
All Toronto industry groups participated in the rally, save for the gold sector which fell more than seven per cent as bullion closed below US$900 an ounce. The Canadian dollar rose 0.83 cent to 77.81 cents US.
