The Toronto stock market was higher Tuesday amid reassuring data suggesting Germany will be able to avoid slipping into recession.
The S&P/TSX composite index surged 66.67 points to approach noon Tuesday at 12,297.14
The Canadian dollar lopped off 0.01 cents to 101.35 cents U.S.
Tech stocks led TSX advancers as MacDonald, Dettwiler & Assoc. rose $1.05 to $54.20.
Patent-licensing firm Wi-LAN Inc. has started litigation against Research in Motion Ltd. alleging patent infringement. The case, launched in the Southern District of Florida, alleges infringement of a patent related to Bluetooth technologies. Wi-LAN shares added six cents to $4.96 while RIM advanced 48 cents to $12.22.
The consumer discretionary segment was also higher as Magna International rose 52 cents to $47.71.
The financials sector was ahead with Sun Life Financial up 39 cents to $27.72.
Commodities were mixed and the mining group was up while copper prices gave up some of Monday's four-cent rise as the March contract on the New York Mercantile Exchange dipped one cent to $3.69 U.S. a pound. Thompson Creek Metals edged up seven cents to $3.18 while First Quantum Minerals gained 19 cents to $20.56.
The energy sector was up as Canadian Natural Resources climbed 27 cents to $28.29.
Shares in oilsands company MEG Energy Corp. declined $1.06 to $32.59 as the company announced a pair of financing deals to raise a total of $800 million, including one with the Caisse de depot et placement du Quebec. MEG said it has agreed to sell nearly 12.13 million shares to a syndicate of underwriters for $33 per share and another 12.12 million shares to the Caisse de depot et placement du Quebec for the same price.
Among gold plays, Argonaut Gold gave back 15 cents to $9.52.
Investors also took in the first earnings report issued by Hudson's Bay Co. since the retailer returned to the Toronto stock market. HBC said its loss from continuing operations was $8.5 million or eight cents per share in the third quarter. That compared with a loss from continuing operations of $7.5 million or seven cents per share in the same year-earlier period.
Revenues in the three months ended Oct. 27 were $930.4 million, up from $896.7 million in the 2011 period. Hudson's Bay Co. also said it will initiate a quarterly dividend of just over nine cents per share and its shares dipped one cent to $16.80.
Investors took in an index of German investor optimism which rose more than expected in December. The ZEW indicator of economic sentiment rose to plus 6.9 points, from minus 15.7 in November. Markets had expected the index to rise only to minus 11.5. Germany’s economy grew a modest 0.2% in the third quarter.
On the economic calendar, Statistics Canada reported this morning that our trade balance with the rest of the world is less than it was last month. Canada's merchandise imports declined 1.2% while exports increased 1.0% in October.
As a result, Canada's trade deficit with the world narrowed from $1.0 billion in September to $169 million in October.
ON BAYSTREET
The TSX Venture Exchange faded 6.34 points to 1,180.40
All but two of the 14 Toronto subgroups were higher to break for lunch. Information technology stocks gained 1.6%, while consumer staples and consumer discretionaries gained 0.9% each.
The two laggards were gold and real-estate, each down 0.1%.
ON WALLSTREET
U.S. stocks advanced Tuesday, as investors grew optimistic that the Federal Reserve may announce more stimulus measures when it wraps up its final meeting of the year.
The Dow Jones Industrials moved up 121.89 points midday Tuesday at 13,291.80
The S&P 500 grew 12.86 points to 1,431.41, while the Nasdaq Composite Index advanced 42.73 points to 3,029.69.
The central bank will have to decide the fate of Operation Twist, a stimulus program that is set to end this month. Expectations are rising for the Fed to announce another round of bond buying in place of the bond swapping program, said experts.
On the corporate front, Delta Air Lines and Virgin Atlantic announced a new joint venture, which includes Delta buying the 49% stake in the British airline that is currently owned by Singapore Airline. Virgin Group and Sir Richard Branson will retain the majority 51% stake and Virgin Atlantic will maintain its brand. Delta shares rose almost 4% on the news.
Share of TripAdvisor jumped after media mogul Barry Diller stepped down as chairman of the travel website and sold his voting stake in the company to Liberty Interactive.
Discount retailer Dollar General posted a higher-than-expected profit for the third quarter, and sales in line with forecasts, but shares of the company declined on a weak outlook.
The U.S. Treasury Department will sell the last of its shares in bailed-out insurer AIG for $32.50 apiece, raising about $7.6 billion U.S. Between the Fed and Treasury's combined $182-billion U.S. injection into AIG, the government enjoyed a profit of $22.7 billion U.S.
Treasury prices on the 10-year note fell, raising the yields to 1.65% from Monday’s 1.62%. Treasury prices and yields move in opposite directions.
Oil prices gathered 10 cents a barrel to $85.66 U.S.
Gold prices sagged $6.30 an ounce to $1,708.10 U.S.
