Bulls are partying hard this first trading day of 2013, celebrating the less-than-ideal agreement reached in Washington to prevent the nation from a hard fall off of the "fiscal cliff" of tax hikes and spending cuts.
In Toronto, the S&P/TSX composite index soared 91.99 points, to greet noon at 12,525.52
The Canadian dollar gained 0.76 cents to 101.38 cents U.S.
At the TSX, materials gained, as investors bid up commodities in relief the U.S. budget deal will prevent an immediate slowdown in the economy
Copper, which was also supported by some positive economic news out of China, was soaring 2.6% at $3.75 per pound in New York.
China’s official manufacturing purchasing managers’ index came in at 50.6, holding steady and adding further evidence its economy was picking up steam.
ArcelorMittal, the world's biggest steelmaker, will sell a 15% stake in one of its Canadian iron ore operations, raising $1.1 billion U.S. to help pay off debt at a time of sluggish demand.
Economically speaking, a survey came out Wednesday suggesting only a marginal improvement in business conditions.
The December RBC Canadian Manufacturing PMI indicated minimal improvement in business conditions in the month with an index reading of 50.4 being just marginally above the so-called break-even level of 50. The index was unchanged from the November level which halted a steady five-month decline in this measure since a recent peak in June of 54.8
ON BAYSTREET
The TSX Venture Exchange prospered 15.33 points to 1,236.63.
All 14 Toronto subgroups surged ahead, led by metals and mining, up 3.3%, global base metals, gaining 2.1%, and materials, picking up 1.7%.
ON WALLSTREET
U.S. stocks surged into the New Year, after U.S. lawmakers reached a last minute deal to avert the fiscal cliff.
The Dow Jones Industrial Average surged 222.12 points, or 1.7%, to 13,326.30. Gains were broad, with all 30 Dow stocks showing solid gains.
The S&P 500 moved up 24.63 points to 1,450.82. The Nasdaq Composite rocketed 65.68 points to 3,085.20
Financial shares led the gains, with Bank of America, JPMorgan Chase and rising between 2% and 4%. Credit card companies Visa and MasterCard both hit all-time highs.
Tech stocks were also faring well, with Apple and Hewlett-Packard logging big increases.
In company news, Avis Budget Group announced it will acquire Zipcar for $12.25 U.S. a share -- a 49% premium over its closing price on Monday. Zipcar shares rose nearly 50%.
Investors cheered the late-night deal reached by the House that keeps the Bush tax cuts in place for most Americans, but raises the tax rate on individuals earning more than $400,000 and married couples earning over $450,000 U.S.
Lawmakers allowed the payroll tax cut to expire but extended federal emergency unemployment insurance benefits for another year.
Investors ignored any downsides to the deal, including Congress's failure to tackle automatic spending cuts, which are now set to go into effect March 1.
Additional challenges remain. Congress must soon raise the debt ceiling, and figure out plans for the postponed spending cuts and the federal budget.
Prices on the 10-year U.S. Treasury note sagged, boosting yields to 1.83% from Monday’s 1.76% Treasury prices and yields move in opposite directions.
Oil prices gained $1.12 to $92.94 U.S. a barrel.
Gold prices hiked $15 to $1,690.80 U.S. an ounce.
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