The Toronto stock market racked up modest gains Friday after most members of the European Union signed on to a deal to tie their economies closer together to ensure there is no repeat of the current European debt crisis.
The S&P/TSX Composite Index approached noon up 80.02 points to 12,031.81
The Canadian dollar gained 0.29 cents to 98.04 cents U.S.
On the corporate level, the TSX focused on telecommunications giants Rogers Communications Inc. and BCE Inc. The two companies announced Friday they will acquire a 75% stake in Maple Leaf Sports and Entertainment, owner of the Toronto Maple Leafs, from the Ontario Teachers Pension Plan for $1.3 billion.
MLSE also owns the NBA’s Toronto Raptors, Major League Soccer’s Toronto FC, the Air Canada Centre and other assets. BCE shares added four cents to $40.64 while Rogers shares lost 30 cents to $36.65.
Commodity prices were mixed as the base metals sector advanced with the March copper contract ahead one cent to $3.51 U.S. a pound. Teck Resources gained 16 cents to $37.52.
Energy stocks were also higher as Suncor Energy gained 18 cents to $29.72.
Financial stocks also moved ahead with Manulife Financial ahead 12 cents to $11.28.
Gold stocks declined as Barrick Gold Corp. faded 17 cents to $50.65.
In other corporate news, a spokesman for the Maple Group isn’t confirming a report that the consortium of financial institutions has hit a roadblock in its plan to buy and combine the Toronto Stock Exchange with a smaller, bank-owned trading system.
A Globe and Mail online report cites unnamed sources as saying there is a disagreement over how much it would cost Maple to acquire the Alpha trading system and combine it with TMX Group, which operates Canada’s largest stock and derivatives market. TMX Group was off 18 cents to $42.54.
Economically speaking, our merchandise exports declined 3.0% in October, according to figures released by Statistics Canada, and imports rose 1.9% As a result, Canada's trade balance with the world went from a surplus of $1.0 billion in September to a deficit of $885 million in October.
ON BAYSTREET
The TSX Venture Exchange gained 21.05 points to 1,538.43, while the Nasdaq Canada index added 4.27 points to 387.42
All but two of the 14 Toronto subgroups gained ground, led by global base metals, up 2.5%, metals and mining, ahead 2%, and health-care, gaining 1.3%.
The two laggards were weighed utilities, off 0.6%, and telecoms, down 0.2%.
ON WALLSTREET
In New York, stocks rallied Friday after a majority of European leaders agreed on a new deal to try to resolve the euro-zone debt crisis.
The Dow Jones Industrials climbed 160.60 points, or 1.3%, nearing lunch time to 12,158.30
The S&P 500 tacked on 18.06 points, to 1,252.41, while the Nasdaq Composite strengthened 39.74 points to 2,614.67.
During a meeting in Brussels, Belgium, early Friday, the 17 members of the euro-zone -- which share the embattled single currency -- reached a deal for a new inter-governmental treaty to deepen the integration of national budgets.
Six other E.U. nations supported the deal, but Britain rejected it. The three remaining E.U. countries tentatively support the deal, but have yet to secure parliamentary approval. Leaders are aiming to have the plan ready by March.
European and U.S. stocks rallied on the news, ignoring the Moody's downgrade of three top French banks: BNP Paribas, Credit Agricole SA and Société Générale.
The U.S. financial sector outperformed the broader market in early trading with Bank of America, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo up between 1.5% and 4%. The rally in financials helped erase some of the industry's outsize losses from Thursday.
DuPont shares plunged, after the chemical maker lowered its forecasts for the year. DuPont CEO Ellen Kullman cited slower growth and global economic uncertainty as reasons for the lower outlook.
Meanwhile, Texas Instruments shares fell after the microchip maker lowered its forecasts for both fourth-quarter earnings and revenue in an announcement after the bell Thursday.
Despite the week's ups and downs, stocks are on track to end little changed. The Dow is up 1.2% for the week so far, while the S&P 500 is 0.7% higher and the Nasdaq is up 0.3%.
Meanwhile, a Reuters report that China is creating a $300-billion U.S. fund to invest in both Europe and the United States could also be lending support to markets.
On the economic front, the government released its latest trade data for October, showing the U.S. trade deficit dipped slightly to $43.5 billion U.S. The number was in line with estimates, but deeper in the red from the $43.1-billion U.S. deficit in the prior month.
The December installment of the University of Michigan's Consumer Sentiment Index beat expectations, rising to 67.7 from 64.1 in November. Analysts were expecting a rise to 65.1.
The price on the benchmark 10-year U.S. Treasury slipped, pushing the yield up to 2.04%, from 1.97% late Thursday. Treasury prices and yields move in opposite directions.
Oil for January delivery moved higher by eight cents to $98.42 U.S. a barrel.
Gold for February delivery gained $2.40 to $1,715.80 U.S. an ounce.
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