Stocks in Toronto looked set for a modest gain at the open Wednesday amid rising oil prices, mixed earnings reports and major acquisition activity in the oil patch.
The S&P/TSX composite index soared 177.74 points, or 1.5%, to end Tuesday at 12,407.70
The Canadian dollar leaped 0.43 Wednesday morning to 101.79 cents U.S.
Canadian affiliates of U.S. energy giant Exxon Mobil Corp. have agreed to buy Celtic Exploration Ltd. of Calgary in a transaction valued at $3.1 billion, including assumed debt and spending obligations.
Celtic’s shareholders are being offered $24.50 per share and a half-share of a new company, code-named Spinco, in return for each share. Celtic’s stock closed Tuesday at $18.12 on the Toronto Stock Exchange before the announcement.
Also in Canada's energy sector, Penn West Petroleum Ltd. has agreed in principle to sell $1.3-billion worth of its non-core properties, representing the equivalent of 12,000 barrels per day of production. Details weren't disclosed.
In corporate earnings, PotashCorp says its profit this year will fall short of expectations following delays in reaching contracts with fertilizer buyers in China and India. It says that earnings for the full 2012 financial year will fall below even the lowest previous estimate of $2.80 to $3.20 per share.
ON BAYSTREET
The TSX Venture Exchange remained positive by 17.05 points to 1,299.78
ON WALLSTREET
Stock futures were little changed Wednesday as investors took in new housing market data and another batch of corporate earnings.
Futures for the Dow Jones Industrials gained 15 points, or 0.1%, to 13,468, about 30 minutes before the opening bell. Futures for the S&P 500 eked ahead 3.8 points, or 0.3%, to 1,453, and for the Nasdaq, futures fell 2.75 points, or 0.1%, to 2,762.50.
Housing starts, which tally the number of new homes under construction, climbed 15% to an annual rate of 872,000 in September, according to the U.S. Census Bureau, the highest level in more than four years and much higher than the 768,000 rate economists had expected.
Building permits for future construction also rose to the highest level in more than four years. Permits were issued at an annual rate of 894,000 during the month, up nearly 12% from an 801,000 rate in the previous month.
European stocks were higher in midday trading. Britain's FTSE 100 gained 0.5%, the DAX in Germany rose 0.2% and France's CAC 40 added 0.4%. Meanwhile, Spanish bonds climbed after Moody's Investors Service affirmed Spain's investment grade credit rating.
Asian markets closed higher. The Shanghai Composite gained 0.3%, the Hang Seng in Hong Kong climbed 1%, and Japan's Nikkei jumped 1.2%.
Oil for November delivery rose 45 cents to $92.52 U.S. a barrel.
Gold futures for December delivery gained $2.70 to $1,749.10 U.S. an ounce.
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