Canada's main stock index acquired wings on Tuesday, with Talisman Energy Inc surging 46% after Spanish oil major Repsol agreed to buy the independent producer for $13 billion.
The S&P/TSX composite index gained 306.11 points, or 2.2%, to greet noon at 14,011.25
The Canadian dollar recovered 0.31 cents to 86 cents U.S.
A near halving in the global oil price since June has lowered price tags on producers like Talisman. Repsol has long been searching for oil and gas assets in North America and elsewhere.
The weakness in oil has hurt Canada's stock markets, which have a large contingent of energy producers. The S&P/TSX composite index had lost 10% of its value in the last month, prior to Tuesday's rise. It is roughly flat for the year.
Canadian Natural Resources and Suncor Energy also were up more than 3% each on Tuesday.
In the financial sector, Royal Bank of Canada gained 1.2% to $78.50 and Toronto-Dominion Bank was up 0.9% at $52.62.
In the economic docket, Statistics Canada reported that manufacturing sales declined 0.6% in October.
The agency also said foreign investment in Canadian securities strengthened to $9.5 billion in October, of both bonds and equity instruments. At the same time, Canadian investment in foreign securities slowed to $293 million, down from an $8.3-billion investment in September.
ON BAYSTREET
The TSX Venture Exchange picked up 1.01 points to 644.30
All 14 Toronto subgroups gained ground, led by a 7.6% leap in energy, while industrials improved 2.4%, and global base metals increased 2.1%.
ON WALLSTREET
U.S. stocks jumped on Tuesday, erasing sharp losses as the price of oil reversed higher and as investors considered generally healthy indicators on the U.S. economy against global concerns.
The Dow Jones Industrials got 153.79 points worth of lift to break for lunch at 17,334.63, with Boeing leading blue-chip gains after the plane manufacturer said it would hike its quarterly dividend 25%.
The S&P 500 recovered 16.71 points to 2,006.34, with energy the best performing and consumer discretionary hardest hit among its 10 major sectors.
The NASDAQ index gained 19.60 points to 4,624.76.
New-home construction in the U.S. topped a million on an annualized rate in November, while housing starts fell 1.6% and building permits declined 5.2%last month.
An industry report on Tuesday had the U.S. manufacturing sector continuing to expand in December but its growth rate at an 11-year low.
Wall Street is also looking to hear from the Federal Reserve on Wednesday, with the central bank gathering to consider the timing and size of interest-rate hikes and whether to reiterate its vow to maintain rates low for a considerable period.
Prices for 10-year U.S. Treasuries gained, lowering yields to 2.08% from Monday’s 2.12%. Treasury prices and yields move in opposite directions.
Oil prices regained 83 cents per barrel to $56.74 U.S.
Gold prices deducted $11.40 an ounce at $1,196.30 U.S.
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