Canada's main stock index rose on Tuesday - led by energy stocks on firmer oil prices – as optimism swelled that U.S. budget talks to avoid the "fiscal cliff" were making headway.
The S&P/TSX composite index was 52.99 points higher to close Tuesday at 12,334.34
The Canadian dollar fell 0.21 cents to 101.45 cents U.S.
The energy sector helped lead the market higher. In the group, Athabasca Oil Corp rose 5% to $10.83, and Niko Resources Ltd. was up
3.5% at $10.43.
Financials gained, on the strength of stocks like Manulife, up 3.4%, to $13.44, and Scotiabank, up 1.3% to $57.40. The materials sector, which includes mining stocks, slipped tracking a decline in gold prices.
Among gold plays, Aurizon Mines was down 6.1% to $3.39 and Alamos Gold, off 4.1%, to $17.35
ON BAYSTREET
The TSX Venture Exchange fell 5.01 points to 1,179.98
Nine of the 14 Toronto subgroups ended the day in positive territory, led by energy stocks, surging 1.2%, while financials and global base metals gained 1.1%.
The five laggards were weighed by gold, off 1.4%, materials, sagging 1.3%, and consumer discretionaries, easing 0.04%.
ON WALLSTREET
Stocks rose Tuesday, amid more signs of a deal in the fiscal cliff negotiations
The Dow Jones Industrial Average progressed 115.57 points to Tuesday at 13,351
The S&P 500 acquired 17.24 points to 1,447.60. The Nasdaq Composite gained 43.93 points to 3,054.53
Apple helped Nasdaq move higher, roughly 1.3%. The iPad maker's shares rose more than 2%, though Apple lost an important ruling.
A federal judge denied its request for a permanent ban on 26 Samsung products that Apple charged had willfully infringed Apple's patents.
Investment bank Jefferies reported quarterly profits Tuesday that beat forecasts. Shares rose 3%.
In the wake of the massacre in Newtown, Conn., gun manufacturers continue to trade lower. Smith & Wesson dropped 11%, and Sturm Ruger fell 8%.
After the closing bell Tuesday, tech giant Oracle will report quarterly results.
House Speaker John Boehner's suggestion that he was open to higher tax rates on the wealthiest Americans was described as "progress" by the White House. President Barack Obama responded to the offer with his own compromise on both tax increases and spending cuts.
Treasury prices were down, raising yields on the 10-year note to 1.83% from Monday’s 1.76%. Treasury prices and yields move in opposite directions.
Oil was up 69 cents to $87.89 U.S. a barrel.
Gold prices tumbled $26.40 at $1,671.80 U.S. an ounce.
