The Toronto Stock Exchange was in positive territory at Thursday’s close as commodity prices gained ground on expectations China may move to stimulate its economy.
The S&P/TSX composite index closed up 105.99 points to 12,338.25
The Canadian dollar strengthened 0.50 cents Thursday to 101.96 cents U.S.
Metals and mining stocks were the mightiest of the bunch Thursday, highlighted by a gain of 5.4% hike in the Lundin Mining, which closed at $5.05, and a 3.5% jump by Taseko Mines to $3.26.
What’s more, Teck Resources closed higher by 0.3% to $29.15
Gold shares also shone brighter, China Gold International the brightest of all, climbing 6.8% to $4.42, while rival Nevsun Resources gained 6% to $4.61. Barrick Gold shares closed higher by 1.6% to $40.96.
In Canadian corporate news, a glimpse into the state of struggling BlackBerry maker Research In Motion will be revealed when the company releases its second-quarter financial results after markets close. Shares rose five cents, or 0.7%, to $6.93.
And eye drug developer QLT Inc. said Thursday it plans to buy back up to 3.4 million of its shares over the next year as the first step in a plan to return $100 million to stockholders. The plan follows the sale by QLT earlier this week of Visudyne, its flagship drug, to Valeant Pharmaceuticals Inc. for $112.5 million. QLT shares dipped three cents, or 0.4%, to $7.70.
In Canada, traders took in a Statistics Canada report that the average weekly earnings for non-farm payroll employees were $906.68 in July, up 1.1% from the previous month.
ON BAYSTREET
The TSX Venture Exchange strengthened 15.45 points to 1,322.31
All but one of the 14 Toronto subgroups were higher Thursday, led by metals and mining, ahead 2.2%, gold, 2.1% stronger, and materials, taking on 2%.
Only a 0.2% decline by health-care issues kept things from being unanimous.
ON WALLSTREET
Investors breathed a sigh of relief Thursday after Spain released its official 2013 budget.
The Dow Jones Industrial average soared 72.46 to end the session at 13,486.
Bank stocks led the broad rally, with shares of Bank of America, JPMorgan Chase and Goldman Sachs all up between 1.8% and 2.6%.
Even U.S.-listed shares of Spanish banks Banco Santader and BBVA rose on the news.
The S&P 500 index notched higher 13.30 points, to 1,446.52, and the Nasdaq Composite Index climbed 42.90 points to 3,136.60
Shares of Sealy rose more than 4% after rival company Tempur-Pedic said it was buying the company for $228 million U.S. Sealy reported zero earnings per share, falling short of expectations. The company canceled the morning's earnings call, citing the new deal.
Meanwhile,Temper-Pedic shares surged 19%.
Shares of Advanced Micro Devices jumped 4% after the chip maker unveiled a new, faster chip that's expected to be 25% and come with integrated graphics.
Goodyear Tire & Rubber shares rose 4% after the company revealed a new road vehicle tire, one that will meet the European Union's highest fuel efficiency standards, rules which go into effect in November.
Shares of spice and condiment maker McCormick & Company Inc fell 3% following the company's quarterly report in which CEO Alan Wilson warned of continued "volatile material costs." The food company reported earnings per share of 78 cents U.S., beating expectations.
Discover Financial Services moved up nearly 5% after the company's earnings beat forecasts.
After the market closes, Research in Motion will report its results. The troubled BlackBerry maker is expected to post a loss of 43 cents U.S. per share. Shares were up 1%.
Nike will also report results after the bell.
While the Spanish government had already promised to cut costs, several analysts and traders said that investors were happy to see something officially documenting Spain's willingness to move forward with necessary, albeit painful, cuts.
Investors woke up to a barrage of data Thursday. On a positive note, U.S. jobless claims fell more than expected, but in a sign that domestic growth is lagging, second-quarter GDP growth was revised downward.
Some investors were looking to China for reasons for optimism.
The People's Bank of China has injected a net ¥365 billion ($58 billion U.S.) into money markets this week, just as China's marquee stock index -- the Shanghai Composite -- reached a three-year low.
On the economic front, durable goods orders dropped more than anticipated to $198.5 billion U.S. in August, 13% lower than the U.S. Census Bureau reported the previous month.
Pending home sales, which were expected to increase by 0.5%, actually dropped by 2.6%.
The price on the benchmark 10-year U.S. Treasury lost ground, raising yields to 1.64% from Wednesday’s 1.62%. Treasury prices and yields move in opposite directions.
Oil for November delivery spiked $2.29 to $92.27 U.S. a barrel.
Gold prices hit a seven-month high Thursday, closing up $26.90 to $1,780.50 U.S. an ounce.
