Equities in Toronto reached their highest in seven weeks on Tuesday on a jump in shares of gold miners and a broad rally in other sectors as well as on news that Japan will delay a sales-tax increase that had threatened to further dampen its economy.
The S&P/TSX composite index gained 74.74 points to greet noon at 14,957.24
The Canadian dollar picked up 0.02 cents to 88.45 cents U.S.
The Toronto stock market's benchmark TSX was higher for a third straight session and is up nearly 10% from an eight-month low in October. It has also advanced in each of the last five weeks.
Japanese Prime Minister Shinzo Abe, who announced a snap election so he could seek a fresh mandate, said the planned rise in the sales tax to 10% would be delayed until April 2017.
Financials advanced, with Bank of Nova Scotia climbing 0.5% to $69.09.
The gold-mining sector rose 3%, reflecting strength in the price of bullion. Barrick Gold jumped 3.8% to $14.60, and Goldcorp added 1.8% to $23.59.
Valeant Pharmaceuticals International Inc gained 4% to $160.68, helping drive up the health-care sector.
ON BAYSTREET
The TSX Venture Exchange nosed up 2.23 points to 780.07.
All but four of the 14 Toronto subgroups were up by noon, with gold shooting higher by 3.2%, materials ahead 2.6%, and health-care improving 1.7%.
The four laggards were weighed most by energy, slumping 0.4%, while metals and mining and their cousins among global base metals each stepped back 0.3%.
ON WALLSTREET
U.S. stocks rose on Tuesday, lifting the S&P 500 to a record high, boosted by healthcare after Actavis' acquisition of Allergan triggered bullish analyst notes.
The Dow Jones Industrials prospered 39.09 points to pause for lunch at 17,686.84
The S&P 500 acquired 9.02 points at 2,050.34. The NASDAQ index remained positive 29.31 points to 4,700.31.
Allergan on Monday accepted a $66-billion U.S. takeover bid from Actavis Plc in cash and stock. At least two analysts raised Actavis' price target, one to as high as $300 U.S. Actavis shares rose 6.6% Tuesday to $264.38 U.S. as the top percentage gainer on the S&P 500.
The largest decliner on the S&P was Urban Outfitters, down 9.1% the day after posting earnings.
Solar company SunEdison rose 24.4%to $20.67 U.S. as it announced that, together with its unit TerraForm Power, it would buy First Wind for $2.4 billion U.S. to enter the U.S. wind power market. TerraForm shares jumped 34% to $34.63 U.S.
Chinese solar company JA Solar Holdings reported its fourth straight quarterly profit, sending its shares to $8.21 U.S., up 5.3%.
Economically speaking, the U.S. government reported a 0.2% gain in wholesale costs in October.
Prices for 10-year U.S. Treasuries were higher, lowering yields to 2.33% from Monday’s 2.34%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.20 to $74.44 U.S.
Gold prices took on $9.50 to $1,193.00 U.S.
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