The Toronto stock market was up sharply mid-afternoon Tuesday as stocks got a lift from a strong showing in the U.S. manufacturing sector.
The S&P/TSX composite index moved skyward 160.63 points, or 1.2%, to close at 13,712.62
The Canadian dollar gained strength against the U.S. dollar, picking up 1.03 cents to 100.94 cents U.S.
Despite nervousness about the turmoil in Egypt, the TSX has not been negatively impacted. The market has actually been positive as investors fleeing risk have bought into commodities such as oil -- sending crude up about 8% over the previous two sessions before easing slightly on Tuesday -- and pushing resource stocks higher.
The base metals sector led the way higher on the TSX, as supply worries and data showing strong expansion in the U.S. manufacturing sector last month pushed copper into record territory, up nine cents to $4.55 U.S. a pound.
Teck Resources rose $1.69 to $62.34 while First Quantum climbed $6.14 to $121.99.
The financial sector also provided lift to the TSX, as Royal Bank gained 61 cents to $54.29.
Scotiabank shares rose 94 cents to $57.40 as the bank announced that it had completed its acquisition of DundeeWealth Inc., saying Monday it now holds 97% of the wealth management firm.
The gold sector was up as Kinross Gold Corp. rose 18 cents to $16.82 while Goldcorp Inc. improved 60 cents $40.79.
Oil prices relaxed after surging to the highest levels since early 2008 on worries that unrest in Egypt could spread or force a closure of the Suez Canal, a key route for oil tankers and cargo ships as they steer from the Persian Gulf to major oil-consuming countries in Europe.
Among energy issues, Canadian Natural Resources advanced 30 cents to $44.95 while Cenovus Energy lost 57 cents to $34.03.
In corporate news, shares in indebted oilsands junior Opti Canada Inc. tumbled 24 cents or 34.8% to 45 cents before the issue was halted on the Toronto Stock Exchange on Tuesday. For well over a year, the company has been undergoing a strategic review, which could include a sale of the entire company. Opti owns a 35% stake in the Long Lake oilsands project, with Nexen Inc. controlling the rest.
Detour Gold Corp. shares jumped $1.87, or 7.2%, to $28.00 after announcing Monday that reserves at its proposed Detour Lake mine in northwestern Ontario, already one of North America’s largest gold deposits, are 31% bigger than previously estimated.
ON BAYSTREET
The TSX Venture Exchange leaped 27.44 points to 2,301.99, while the Nasdaq Canada index was up 18.92 to 761.20.
In Toronto, all but one of the 14 subgroups stayed positive all through Tuesday, led by metals and mining stocks, surging 3.2%, global base metals, up 2.7%, and materials, advancing 2.2%.
Only a 0.2% pause by real-estate stocks kept things from being unanimous.
ON WALLSTREET
In New York, stocks started February with a bang Tuesday, as the three major indexes rose more than 1% and the Dow topped 12,000 for the fourth time in a week.
Investors overcame ongoing jitters over protests in Egypt and new developments in Jordan, where the king dismissed his government and appointed a new prime minister.
The Dow Jones Industrials moved 148.23 points, or 1.3%, higher to close at 12,040.20.
All but three of the 30 blue-chip components moved higher. A 5% jump in shares of Pfizer led the advance. The drug maker posted better-than-expected fourth-quarter earnings. Bank of America and Alcoa were also big Dow gainers.
The S&P 500 was 21.47 points higher to 1,307.59. The tech-heavy Nasdaq gained 51.11 points to 2,751.19.
Shares of printer manufacturer Lexmark soared more than 11% following strong earnings and an upbeat forecast.
Baidu was the tech-heavy index's big winner, with shares spiking more than 9%. China's main Internet search provider said its fourth-quarter profit nearly tripled from a year earlier, to $176 million U.S.
Chinese online media firm Sohu.com also jumped 6%, a day after reporting strong earnings.
Before the opening bell, United Parcel Service logged a 44% jump in profit that beat forecasts and said it expects earnings per share to climb to a record high for 2011. Shares of the package delivery company were up 4.6%.
Much stronger-than-expected manufacturing data added fuel to the buying spree.
Economically speaking, the Institute for Supply Management's index of manufacturing rose to 60.8 in January, growing at its fastest pace in more than six years. Economists were expecting the index to edge lower to 58.5. Any number above 50 indicates growth in the sector.
Construction spending dropped 2.5% in December, following a rise of 0.4% in November. Economists were expecting spending to ease 0.4% during the month.
In Washington, D.C., the Senate Budget Committee kicks off three days of hearings on the economic outlook, tax reform and challenges to the economic recovery.
At the end of the week, the government releases its January jobs report, and investors will be eyeing the report closely for signs of improvement in the labour market.
The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 3.44% from 3.38% Monday. Treasury prices and yields move in opposite directions.
Oil for February delivery slipped $1.52 to $90.67 U.S. a barrel.
Gold futures for April delivery gained $5.80 to settle at $1,340.30 U.S. an ounce.
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