The Toronto stock market was sharply higher early Friday afternoon, amid rising commodities as more political stability in Italy and Greece calmed investors.
The S&P/TSX composite index had progressed 177.24 points, or 1.5%, by lunch hour to 12,286.11
The Canadian dollar gained 0.56 cents to 98.86 cents U.S.
Despite Friday’s strong showing, the TSX headed for a negative week after Italy became the flashpoint for European government debt crisis worries amid a lack of confidence that the country can deal with its huge debts of €1.9 trillion, which is too big for Europe’s current bailout facility to handle.
However, expectations that Monti will lead a post-Berlusconi government has helped calm those jitters, and Italy’s 10-year bond yield was now down below the 7% threshold that eventually forced Greece, Ireland and Portugal to seek bailouts. It fell another 0.17 percentage points Friday at 6.62%
The energy sector rose as Suncor Energy gained 71 cents to $32.32 and Imperial Oil rose 62 cents to $42.39.
The base metals sector rose while metal prices also advanced as December copper on the Nymex edged up five cents to $3.42 U.S. a pound. Teck Resources climbed $1.04 to $38.79 and First Quantum Minerals advanced $1.30 to $19.50.
The gold sector was ahead as Barrick Gold Corp. improved by $1.12 to $53.14 and Goldcorp Inc. ran up $1.31 to $53.61.
The financials sector also provided lift, with Scotiabank ahead 61 cents to $51.60 and Royal Bank climbed 52 cents to $45.52.
Shares in TransCanada Corp.’s were ahead 21 cents to $40.06 after the U.S. State Department said Thursday it wants the company to explore other routes for the controversial Keystone XL pipeline so it skirts ecologically sensitive areas of Nebraska. That will delay the $7-billion U.S. project by years, and could kill it outright if TransCanada customers lose patience and find other alternatives. TransCanada shares had lost about 9% in the last two weeks.
In earnings news, investor Brookfield Asset Management Inc. reported third-quarter net income of $716 million U.S., or 36 cents per share, from $342 million, or 16 cents per share a year earlier. Revenue increased to $4.58 billion from $3.55 billion. It shares gained 49 cents to $29.11.
Lumber company Stella-Jones Inc. said quarterly net income grew to $16.6 million, or $1.03 a share. That’s an increase from $12.4 million, or 78 cents per share, a year ago. Sales rose to $181.8 million from $161.3 million and its shares ran ahead 60 cents to $40.35.
ON BAYSTREET
The TSX Venture Exchange advanced 20.16 points to 1,644.72, while the Nasdaq Canada index gained 12.59 points to 412.43
All 14 Toronto subgroups were higher midday, led by metals and mining, up 2.8%, while gold vaulted 2.7%, and materials hiked 2.4%.
ON WALLSTREET
In New York, stocks soared Friday, advancing for a second straight session, as leaders in Italy and Greece took measures to curb the region's ongoing debt crisis.
The Dow Jones Industrials grew 259.36 points, or 2.2%, to 12,153.20
The S&P 500 gained 23.94 points to 1,263.63, while the Nasdaq Composite Index picked up 52.44 points to 2,677.59. The day's gains put the Dow and S&P 500 on track to end the week with slim gains, but the Nasdaq remains in the red.
Friday's rally was sparked by high hopes that Greece and Italy are on the right track and moving in the right direction, according to some experts.
E*Trade shares slumped after the company said Thursday that it is not for sale -- ending ongoing speculation that the online brokerage would be acquired. The stock was the biggest declined on the S&P 500.
Disney reported record-setting earnings after the closing bell Thursday, posting a 21% gain in net income for the 2011 fiscal year. Shares of the media giant jumped Friday, leading the gains on the Dow and S&P 500.
Shares of Nordstrom slipped after the department store chain reported an increase in quarterly earnings after the close Thursday but lowered its full-year outlook.
Shares of Nvidia rose after the chipmaker posted a third-quarter profit late Thursday that more than doubled from a year earlier.
Greece swore in a new prime minister, Lucas Papademos, early Friday morning. Papademos, a former banker and European Central Bank vice president, was appointed Thursday and plans to form a new national unity government.
Meanwhile, Italy's senate passed a series of austerity measures demanded by Europe, as it seeks to ward off fears of a debt-driven crisis.
U.S. stocks snapped back Thursday from a steep sell-off earlier this week, as Italian bond yields eased slightly and positive corporate and economic news lifted the mood on Wall Street.
But trading will likely remain choppy until more decisive steps are taken toward solving the European debt crisis.
Economically speaking, the University of Michigan’s consumer sentiment index for this month rose to 64.2, compared to a final October reading of 60.9.
Bond markets were closed for Veterans Day
Oil for October delivery advanced $1.02 to $98.80 U.S. a barrel
Gold futures for December delivery rose $23 to $1,782.60 U.S. an ounce
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