The Toronto stock market held onto gains Wednesday as buyers moved in after a series of selloffs pushed its main index to a seven-month low amid anxiety over Greece's possible exit from the euro-zone.
The S&P/TSX Composite Index gained 44.70 points to approach noon at 11,387.75
The Canadian dollar dipped 0.32 to 98.96 cents U.S.
On the TSX, the base metals sector was ahead as copper prices continued to slide with the July contract down another two cents to $3.49 U.S. a pound, its lowest level since early January.
The metal, viewed as an economic barometer since it is used in so many industries, has plunged 10% this month. Teck Resources climbed 66 cents to $31.06 while First Quantum Minerals ran up $1.05 to $17.89.
The gold sector ticked higher and Barrick Gold Corp. climbed $1.07 to $36.30 and Goldcorp Inc. improved 57 cents to $33.32.
The energy sector moved up and Cenovus Energy rose 30 cents to $32.07 and Canadian Natural Resources advanced 35 cents to $29.79.
Industrial stocks also supported the TSX, with Canadian Pacific Railway up $2.12 to $76.29, a day before CP's annual meeting. Shareholders will vote on a proposal from Pershing Square Capital Management, its biggest shareholder, to install a new slate of directors and replace CEO Fred Green with former Canadian National CEO Hunter Harrison.
Canadian National Railways was up $1.48 to $83.63.
The deterioration in investor confidence has left the TSX at its worst level since early October of last year, down more than 10% from its most recent highs registered at the end of February.
The resource sectors have led the fall with the TSX materials index down 20% year to date and the energy group off about 13%.
A big pre-tax gain on lease terminations allowed Sears Canada Inc. to post a quarterly net profit of $93.1 million in the first quarter despite declining sales. Total revenue was $915.1 million, down 7.8% from the same 2011 period, including a decrease of 6.3% in same store sales. Its shares were unchanged at $13.15.
On the economic slate, Statistics Canada reported that manufacturing sales increased 1.9% in March to $49.7 billion, the largest advance since September 2011. The gain was led by the petroleum and coal products industry and was much better than the 0.3% gain that economists expected.
ON BAYSTREET
The TSX Venture Exchange fell 9.21 points to 1,230.86, while the Nasdaq Canada remained aloft 2.02 points to 367.06.
All but three of the 14 Toronto subgroups were ahead by lunch time. Metals and mining sprinted 3.1%, while gold surged 2.3%, and materials soared 2%.
The three laggards were utilities, down 0.4%, while consumer staples and real-estate each sank 0.3%.
ON WALLSTREET
U.S. stocks gained ground Wednesday, as investors welcomed strong U.S. economic data and minor headway in Europe, despite ongoing worries about political uncertainty in Greece.
The Dow Jones Industrials prospered 38.49 points to 12,670.49.
The S&P 500 added 3.53 points to 1,334.19. The tech-rich Nasdaq Composite Index tacked on 4.99 to 2,898.75.
U.S. stocks closed at three-month lows Tuesday as the euro-zone debt crisis continued to take a toll on the markets.
Facebook boosted the size of its IPO by 25%, seeking to raise up to $16 billion, according to an SEC filing.
Shares of retailer JC Penney tumbled after it reported a much bigger than expected loss for the most recent quarter. The company also discontinued its dividend.
Staples reported earnings in line with expectations, but a surprise 1% drop in sales sent shares of the office supply company lower.
Shares of Deere were lower even after the company beat expectations on its quarterly results and raised its forecast.
Target also beat expectations and increased its forecast, pushing shares higher.
JPMorgan Chase moved higher Wednesday, a day after the bank held its annual shareholder meeting in Tampa, Fla., where shareholders approved pay packages for the bank's top executive, and affirmed their wishes to keep Jamie Dimon in the dual role of chairman and CEO.
The stock is down more than 12% over the previous five trading sessions.
According to documents filed with the SEC, Warren Buffett's Berkshire Hathaway built new positions in General Motors and Viacom during the first three months of 2012.
News that Greeks were withdrawing hundreds of millions of euros unnerved investors but reports that the European Central Bank would continue funding the banks helped ease those worries.
Borrowing costs initially surged, with the Spain's 10-year yield jumping to 6.5%, before pulling back to 6.25%. Italian bond yields also jumped to 6% before easing to 5.8%.
Also helping stem the pressure were comments from European leaders. German Chancellor Angela Merkel said she wants Greece to remain in the euro-zone and will make every effort to help the nation get on solid footing. Spanish Prime Minister Mariano Rajoy also said it would be "a very big mistake" if Greece were to exit.
Economically speaking, housing starts jumped to an annual rate of 717,000 in April, from the revised level of 699,000 in March. Analysts had expected a rate of 680,000.
Meanwhile, building permits fell to an annual rate of 715,000 in April, from the revised figure of 769,000 in March. Analysts expected permits to fall to 730,000.
The Fed's reading on the nation's factory output was also better than expected. Industrial production rose 1.1% in April, rising at the fastest pace since December 2010. Economists were forecasting that industrial production rose 0.5% in April after being unchanged the previous month.
The minutes from the April meeting of the Federal Open Market Committee will be issued at 2 p.m. ET.
The price on the benchmark 10-year U.S. Treasury regained strength, pushing the yield down to Tuesday’s 1.78%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil fell back another $1.01 to $92.97 U.S.
Gold futures for June delivery lost $18 to $1,540.20 U.S. an ounce.
