Strong U.S. consumer data helped lift commodities and the Toronto stock market Tuesday as investors looked for further signs that euro-zone officials are finally prepared to deal comprehensively with the region’s debt crisis.
The S&P TSX Composite Index approached noon ET ahead 112.08 points, or nearly 1%, to 11,752.29
The Canadian dollar advanced 0.49 cents to 97.16 U.S. cents.
On the TSX, the tech sector ran up with Research In Motion Ltd. up $1.12 to $18.13. The BlackBerry maker announced plans to offer software to companies that will allow them to use iPhones and other mobile devices on its secure network starting in the first quarter of next year.
The energy sector rose with Canadian Natural Resources ahead 63 cents to $35.83 and Suncor Energy was up 34 cents to $29.35.
The base metals sector moved up as the December copper contract was up a cent at $3.37 U.S. a pound. Teck Resources climbed 34 cents to $34.20 and Ivanhoe Mines rose 37 cents to $20.32.
The gold sector was up with Goldcorp Inc. gaining 34 cents to $51.06.
Financials also provided lift to the TSX with Bank of Montreal ahead 79 cents to $57.53 and TD Bank up 60 cents to $69.50.
In corporate news, Calgary-based energy company Nexen Inc. said it will create a partnership with a consortium led by Inpex Corp. of Japan to develop shale gas lands in northeast B.C.
Nexen will sell a 40% working interest in its northeast B.C. assets and will remain the operator. The 40% interest will raise $700 million, with half up front and a 50% capital carry.
Nexen shares gained 74 cents to $16.01.
ON BAYSTREET
The TSX Venture Exchange picked up 2.52 points to 1,515.21, while the Nasdaq Canada index jumped 9.14 points to 392.38.
All but two of the 14 Toronto subgroups advanced by midday, led upwards by information technology issues, ahead 2.1%, energy stocks, up 1.8%., and the metals and mining group, up 1.3%.
The two laggards were consumer discretionaries and real-estate issues, each off 0.3%.
ON WALLSTREET
In New York, stocks moved higher Tuesday, extending gains from the previous day's rally, as investors remain hopeful that leaders are making progress on addressing the euro-zone debt crisis.
The Dow Jones Industrials gained 98.01 points to break for lunch at 11,621
The S&P 500 increased 9.59 points, to 1,202.14, while the Nasdaq Composite inched up 0.94 points to 2,528.28.
The day's increase put the Dow back in positive territory for the year, while the S&P 500 and Nasdaq remain in the red.
Financial stocks, which led Monday's advance, were among the losers Tuesday. Bank of America and JPMorgan Chase posted the biggest declines in the Dow. Morgan Stanley, and Goldman Sachs were also down more than 1%.
Early Tuesday, American Airlines' parent company, AMR Corp. announced that it has filed for Chapter 11 bankruptcy in order to "achieve a cost and debt structure that is industry competitive." The company's stock plunged more than 80%.
Shares of Companies Tiffany & Co . sank after the luxury jewelry retailer reported earnings that topped forecasts but reeled in its guidance for the fourth quarter.
Nerves were strained after Moody's warned that 87 banks across 15 of the 17 eurozone countries could face downgrades and Italy auctioned €7.5 billion of three- and 10-year bonds that drew the highest yields in years. Borrowing costs in Italy have been above the uncomfortable 7% mark for days.
But investors are banking on European leaders to step up and agree to a detailed resolution to Europe's debt crisis.
European leaders are working on a new plan to ensure fiscal discipline across the euro area. The proposal is expected to give the European Union greater authority over the budget policies of individual euro-zone nations.
A two-day meeting of euro-zone finance ministers gets underway Tuesday, however investors aren't expecting any major announcements until a European Union summit next week.
Optimism about a possible Europe solution, along with strong Black Friday weekend sales, also sent stocks surging on Monday.
Economically speaking, stocks also found support after the U.S. Conference Board's Consumer Confidence Index shot up to 56 in November from 39.80 the prior month. Economists were expecting the reading to come in at 42.5.
Elsewhere, the S&P/Case Shiller index, a gauge of home prices in 20 major cities, dropped 3.6% in September compared to a year ago, following a 3.8% decline in the previous month. Analysts surveyed by Briefing.com expect prices to have dropped 3.0% versus a year ago.
The price on the benchmark 10-year U.S. Treasury moved lower, pushing the yield up to 2.02% from 1.96% late Monday. Treasury prices and yields move in opposite directions
Oil for January delivery added $1.25 to $99.46 U.S. a barrel.
Gold prices grew $4.23 to $1,715.03 U.S. per ounce.
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