Stock markets raced higher Wednesday as trading resumed for the first time since the U.S. Congress agreed on measures to avoid the so-called "fiscal cliff."
In Toronto, the S&P/TSX composite index gained 107.24 points to close the first session of 2013 at 12,540.77
The Canadian dollar gained 0.86 cents to 101.48 cents U.S.
In commodities, oil prices rose, although in Canada’s energy sector, Imperial Oil stepped back 27 cents to $42.46, while Suncor added 58 cents to $33.29
Copper prices for the March contract were up 8.4 cents to $3.65 U.S. a pound.
On the TSX, metals and mining stocks were among the biggest gainers, as Teck Resources was up $1.18 to $37.33.
BlackBerry-maker Research In Motion shares shed 21 cents to $11.59 as reports surfaced that Apple may be testing its next iPhone model with a mid-year target release date.
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 18.54 points to 1,239.84.
All but one of the 14 Toronto subgroups surged ahead, led by metals and mining, up 3.4%, global base metals, gaining 2.2%, and industrials, picking up 2%.
Only a 0.01% slide by real-estate issues spoiled the party.
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 308.41 points, or 2.4%, to 13,412.50. All 30 Dow stocks showed solid gains.
The S&P 500 moved up 36.23 points, or 2.5%, to 1,462.42. The Nasdaq Composite rocketed 92.75 points, or 3.1%, to 3,112.26
Financial shares led the move higher, with Bank of America, Citigroup and Wells Fargo 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%.
Shares of Dole Food tumbled 12%, after the company lowered its earnings and sales forecasts for the year, blaming a difficult economic environment for its fresh fruit business.
Shares of LinkedIn dropped more than 3%, after it was downgraded by analysts at Barclays.
Stocks closed out 2012 on a high note, with a New Year's Eve rally that gave all three indexes yearly gains between 7% and 16%.
Major global markets were closed Tuesday for the New Year's holiday,
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.
Economically speaking, the Institute for Supply Management's monthly manufacturing index showed activity rebounded in December.
But investors shrugged off the Census Bureau's data on construction spending, which showed a decrease of 0.3% in November. Analysts had predicted a 0.5% increase.
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 $1.07 to $92.89 U.S. a barrel.
Gold prices hiked $11.30 to $1,687.10 U.S. an ounce.
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