Toronto stocks finished Tuesday’s trading notably higher, boosted by strength in commodity-linked sectors. Markets in the U.S. and Europe were also higher.
The S&P TSX Composite index was ahead 82.87 points, to conclude the day at 11,100.34, near an 11-month high.
Mining stocks were up, as Teck Resources added 3.7% to $27.48, First Quantum was up 4.3% to $72.22 and Inmet gained 2.1% to $54.04.
The Energy Index added muscle after crude oil gained in price. Suncor surged 3.1% to $35.04, Canadian Natural Resources added 3.6% to $65.77 and Encana advanced 2% to $56.98.
In corporate news, Barrick Gold Corp. turned lower by 2.4% to $42.44. The company said it has agreed to sell silver production to Silver Wheaton for $625 million U.S. Silver Wheaton shares gained eight cents, or 0.6%, or $12.73.
Research in Motion was up 1.1% to $85.29 as the stock had its target price raised to $94 from $90 at Oppenheimer & Co.
Fairfax Financial Holdings Limited dropped 2.4% to $368.76 after the company announced that it intends to offer 2.88 million subordinate voting shares at a price of $347.00 U.S. per share, which would result in aggregate gross proceeds of $1 billion U.S.
The stock had its target price raised to $375 from $350 at RBC Capital Markets. The stock's rating was maintained at "outperform".
Imris Inc. rallied 6% to $5.30 after the medical equipment provider said its systems received 510-k clearance from the FDA for marketing its IMRISNV and IMRIScardio systems in the U.S.
Telus was up 1.3% to $34.87 after the company announced it has agreed to buy Black's Photo Corp. in a deal worth $28 million.
Economically speaking, Canadian building permits dropped 11.4% in the month of July, compared to a revisited increase of 1.2% last month. Economists were looking for a drop of 0.5%.
The Canadian dollar was down 0.16 cents, to 92.66 cents U.S.
ON BAYSTREET
Of the 14 TSX subgroups, 10 were positive, led by global base metals, ahead 2.8%, metals and mining stocks, 2.6% richer, and energy stocks, roaring ahead 2.4%.
Gold weighed the four laggards, losing 1.1% of its lustre, utilities were off 0.7% and consumer discretionary stocks were down 0.4%.
The TSX Venture Exchange gained 11.81 points to 1,241.06, while the Nasdaq Canada index added 17.62 points to 786.50.
ON WALLSTREET
In New York, the Nasdaq hit its highest point in almost a year Tuesday and the Dow and S&P 500 also climbed as commodity shares rallied, and General Electric was upgraded.
The Dow Jones Industrials advanced 56.07 points, to end the day at 9,497.34. The S&P 500 index surged 8.98 points to 1,021.48. The Nasdaq composite index rose 18.99 points to 2,037.77.
Wall Street ended a choppy week lower as investors hunkered down after a strong August and ahead of the long holiday weekend. All financial markets were closed Monday for Labour Day.
But Wall Streeters returned in better spirits Tuesday, scooping up a variety of stocks, led by the commodities sector.
A more than 4% spike in oil prices and gold prices that briefly topped $1,000 gave a lift to the influential commodities sector. Dow stocks Chevron and Exxon Mobil were the biggest gainers on the blue-chip average.
Tempering the advance was a selloff in some of the financial shares that rallied late in the summer, including Fannie Mae, Freddie Mac, Citigroup and AIG. Dow components JPMorgan Chase and Travelers also retreated.
All three major markets rose between 11% and 13% over the summer. But after such a run, "it's show-me-the-money time for the economy and profits in the third quarter," one expert said. "The improvements have to start or people are going to doubt the rally and back out."
September is typically a tough month for Wall Street as market pros return from their summer vacations with a cleaning house mentality. It is the worst month on Wall Street in terms of percentage losses for the Dow, S&P 500 and Nasdaq composite, according to Stock Trader's Almanac.
In company news, hopes that a period of deal making could resume helped nudge the advance along.
Kraft Foods shares slumped almost 6% after British candy maker Cadbury spurned its $16.7-billion-U.S. takeover offer. However, the company, a Dow component, said it would continue to pursue a merger.
General Electric shares rallied 4% after JPMorgan upgraded the stock to "overweight" from "neutral."
Among other movers, Opexa Therapeutics surged 267% after a mid-stage study showed that at least 83% of patients taking its multiple sclerosis drug had not relapsed one year later.
On the economic front, leaders from the world's 20 biggest economies, meeting over the weekend, agreed to continue to provide stimulus to support the global recovery.
In other economic news, consumers cut their borrowing in July by $21.6 billion U.S., the most on records dating back to 1943. Economists thought credit would fall by $4 billion U.S. Credit fell by a revised $15.5 billion U.S. in June.
Treasury prices slid, raising the yield on the benchmark 10-year note to 3.46% from 3.44% late Friday. Treasury prices and yields move in opposite directions.
The price of a barrel of oil was up $3.08 to $71.34 U.S.
Gold prices surged three dollars to $1,000 U.S. an ounce.
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