Canadian stocks rose for a second day as European debt concerns eased after a bond auction in Portugal and Consolidated Thompson Iron Mines Ltd. agreed to be bought by Cliffs Natural Resources Inc.
The S&P/TSX composite index closed Wednesday’s session up 59.16 points to 13,460.21
Consolidated Thompson, which produces iron in Quebec, soared after accepting the takeover offer of $17.25 a share in cash. Cenovus Energy Inc., Canada’s fifth-biggest energy company, advanced 0.2% to $32.45 as crude oil climbed for a third day.
Consolidated Thompson surged 29.7%, the most since March 2009, to a record $17.35. Labrador Iron Ore Royalty Corp., which owns a stake in Iron Ore Co. of Canada, gained 4.3% to $71.29, also a record. Baffinland Iron Mines Corp., the target of a bidding war between ArcelorMittal and Nunavut Iron Ore Acquisition Inc., advanced 4.1% to $1.51.
Teck Resources Ltd., Canada’s largest base-metals and coal producer, increased 1.8% from a record close to $64.24.
First Quantum Minerals Ltd., the country’s second-biggest publicly traded copper producer, rose 1.3% to $121.16. Lundin Mining Corp., which mines base metals in Europe, soared 7.1% to $7.90.
Potash Corp. and Agrium Inc. climbed after the USDA said corn inventories dropped 7.9% on Dec. 1 from a year earlier.
Potash Corp. increased 2.7% to $167.29. Agrium, Canada’s second-biggest fertilizer producer, rose 2.9% to $92.54.
Yoga-wear retailer Lululemon Athletica Inc. surged 8.2% to $71.94 after raising its fourth-quarter earnings forecast to 55 cents a share to 57 cents a share, excluding certain items.
Analysts had forecast profit of 50 cents a share.
Economically speaking, Statistics Canada said new home prices in Canada climbed by a stronger-than-expected 0.3% in November from October, for a fourth consecutive gain.
ON BAYSTREET
The TSX Venture Exchange raced ahead 37.72 points to 2,303.46, while the Nasdaq Canada index ran up 7.75 points to 789.75.
In Toronto, 10 of the 14 subgroups were higher on the day. Metals and mining stocks rallied 1.8%, global base metals and information technology advanced 1.1% each.
The four laggards were weighed mostly by health-care, off 0.7%, gold, down 0.3%, and industrials, fading 0.2%.
ON WALLSTREET
In New York, stocks held onto solid gains in afternoon trading, with all three major indexes at multi-year highs, as financial shares continued to lead a broad-based rally.
The Dow Jones Industrials added 83.56 points to 11,755.40.
The S&P 500 picked up 11.48 points to 1,285.96. The Nasdaq Composite Index was higher by 20.50 points to 2,737.33
JPMorgan Chase was the Dow's biggest gainer, jumping more than 2%, followed by Bank of America, American Express and Boeing
AIG announced Wednesday that it has agreed to sell its Taiwan unit, Nan Shan Life Insurance Company, for $2.16 billion U.S. in cash. Shares of the insurer were down flat.
Shares of ITT surged 14% after the manufacturing company announced plans to split into three publicly traded companies by spinning off its water-related businesses and defense division.
A number of big names were hovering around 52-week highs Wednesday, including Exxon Mobil Corp., Chevron Corp., United Technologies Corp. and Time Warner Inc.
Economically speaking, Treasury Secretary Timothy Geithner said China's policies are a growing source of concern in the United States and other countries. In a speech at Johns Hopkins,
Geithner also said that China's undervalued currency and dependence on exports must be addressed. His remarks come ahead of next week's U.S. visit by Chinese President Hu Jintao.
The Federal Reserve released its snapshot of economic activity for January Wednesday afternoon.
Known as the Beige Book, the report showed that the economy continued to grow moderately across the nation. Despite the lagging housing market, the Fed reported bright spots in manufacturing, retail, and non financial services sectors.
The December Treasury budget was also released Wednesday afternoon. The budget shortfall eased to $80 billion U.S. in December from $91.4 billion U.S. in the previous month.
Prices on the benchmark 10-year U.S. Treasury sank a bit, correspondingly raising the yield to 3.35% from Tuesday’s 3.34%. Treasury prices and yields move in opposite directions.
Oil for February delivery gained 62 cents to $91.73 U.S. a barrel
Gold Futures for February ended the day up $1.50 to $1,385.80 U.S. an ounce.
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