The Toronto stock market was higher Thursday as commodities shot up amid growing hopes that Greece can get enough support for a crucial bond swap.
The S&P/TSX Composite Index approached noon up 75.45 points to 12,425.61
The Canadian dollar tacked on 0.56 cents to 100.79 cents U.S., after the Bank of Canada said it was leaving its key rate at 1%.
The bank also noted that economic conditions have improved over the past few weeks, citing "tentative signs of stabilization in European bank funding and sovereign debt markets."
It also noted that conditions in global financial markets have improved and risk aversion has decreased. But the bank cautioned that "the global economy is still expected to grow below its trend rate as the deleveraging process in advanced economies proceeds."
The TSX also found support from the financial sector after CIBC reported that quarterly adjusted earnings came in at $1.97 a share, beating analyst forecasts by four cents.
The bank posted net income of $835 million, or $1.93 per share, an increase from $763 million, or $1.80 per share, a year ago as CIBC benefited from stronger results in its Canadian retail banking business and mortgages. Its shares rose 21 cents to $76.48.
The TSX snapped a three-session losing run Wednesday that amounted to a loss of over 400 points amid worries about slowing Chinese growth and signs of slowing economic activity elsewhere such as the euro-zone and Brazil.
But there has also been nervousness about whether Greece can get enough private creditors on side to complete a debt swap that would see those investors swap their Greek bonds for new ones with a 53.5% lower face value, lower interest rates and longer maturity dates. The hope is that by lowering the amount of debt it has to repay, Greece can gradually return to growth.
If not enough investors agree and the bond deal fails, the country could default on its debt in less than two weeks, prompting renewed turmoil in financial markets and knocking confidence in the global economic recovery.
By early Thursday, banks, pension funds and other investors holding more than half the €206 billion total debt in public hands had pledged to take part. New legislation will allow Greece to force holdouts into accepting the deal if overall participation is not high enough.
Investors have until 3 p.m. EST to sign up, though official results aren’t expected until Friday morning.
Commodities were higher across the board.
The base metals sector rose as May copper rose three cents to $3.80 U.S. a pound. Teck Resources climbed 92 cents to $36.74 while HudBay Minerals improved by 19 cents to $11.38.
The energy sector gained with Suncor Energy ahead 40 cents to $34.12.
Canadian Natural Resources Ltd. posted a profit of $832 million, compared to a net loss of $309 million a year ago. Revenue grew to $4.2 billion from $3.4 billion. The oil and gas producer also said that its quarterly dividend will rise 17% to 10.5 cents. Its shares rose 25 cents to $35.39.
Among gold plays, Kinross Gold Corp. gained seven cents to $10.74.
In other earnings news, grain handling and food processing company Viterra Inc. reported first-quarter net earnings of $77.7 million or 21 cents per share, compared with $100.7 million or 27 cents per share in the same 2011 period. Its shares declined 11 cents to $10.69.
Units in Cominar Real State Investment Trust ticked five cents higher to $23.70 after it said net income rose 9.2% to $26 million in the fourth quarter helped by gains made from acquisitions in 2011. Operating revenues grew to $78 million from $71.3 million. Cominar is the largest commercial property owner in Quebec.
On the economic slate, Statistics Canada’s New Housing Price Index rose 0.1% in January, following a similar increase in December, mostly due to growth in Calgary and Vancouver.
Meantime, Canada Mortgage and Housing Corporation reported that housing starts came in at 201,100 units in February, up from 198,100 units in January.
ON BAYSTREET
The TSX Venture Exchange gained 5.63 points to 1,627.30, while the Nasdaq Canada index moved ahead 4.28 points to 411.17
All but three of the 14 Toronto subgroups were positive by lunch hour. Metals and mining zoomed 1.7%, while health-care issues were 1% more robust, and global base metals took on 0.9%
The three laggards were utilities, which slid 0.4%, gold, down 0.1%, and consumer staples fell 0.03%.
ON WALLSTREET
In New York, stocks were modestly higher Thursday, as investors grew hopeful that private sector bondholders are on the verge of accepting a debt swap deal with Greece.
The Dow Jones Industrials approached noon Thursday 63.69 points higher to 12,901.
The S&P 500 gained 10.88 points to 1,363.51, while the Nasdaq added 31.60 points to 2,967.29
Shares for McDonald's fell after the fast food franchise said that same-store sales rose 7.5%
Anheuser-Busch InBev shares rose after the brewer reported quarterly earnings and sales that topped forecasts, and issued an upbeat outlook.
Shares of AIG slipped a day after the Treasury Department said it was selling $6 billion U.S. worth of its AIG stock at a profit. But AIG still owes some $42 billion U.S. and it's unclear when that will be repaid.
Meanwhile, investors are also gearing up for the government's monthly jobs report, which is due Friday morning. Ahead of the highly-anticipated report, data on initial jobless claims and planned job cuts were mixed, but the overall outlook for the labor market remains upbeat.
A survey of 19 economists predicts that the economy added 210,000 jobs in February, leaving the unemployment rate unchanged at 8.3%.
Economically speaking, initial jobless claims for the week ended March 3 totaled 362,000, an increase of 8,000 from the prior week, according to the U.S. government. That was higher than expectations of 355,000, according to a survey of analysts by Briefing.com.
Planned job cuts for the month of February totaled 51,728, according to a report from outplacement consulting firm Challenger, Gray & Christmas released before the opening bell.
That's down from the 53,486 cuts recorded in January.
On Wednesday, payroll processor ADP said the private sector added 216,000 jobs in February -- an improvement from the month prior and roughly in line with expectations.
Treasury prices for the 10-year note sagged, raising yields to 2.02% from Wednesday’s 1.94%. Treasury prices and yields move in opposite directions.
Oil for February delivery gained 82 cents to $106.98 U.S. a barrel.
Gold futures for April delivery rose $12.90 to $1,696.80 U.S. an ounce.
