The Toronto stock market was higher on the last trading day of 2012 with support from the resource sector in the wake of Chinese data that showed manufacturing growth in December at its strongest in 18 months.
But attention was mainly focused on Washington and attempts to head off automatic tax hikes and spending cuts due to click in at the start of the new year that could push the U.S. back into recession if they’re allowed to stand.
The S&P/TSX composite index notched higher by 117.41 points, or nearly 1%, to finish 2012 at 12,433.53
The Canadian dollar gained 0.29 cents to 100.64 cents U.S.
Still, the TSX was last seen heading for a 2012 gain of only about 3%, reflecting a slowing Chinese economy during much of the year and worries about how much of a hit the U.S. economy would take from steps to cut the huge American deficit.
Copper prices rose as the HSBC China manufacturing Purchasing Managers’ Index rose to a final reading of 51.5, the best reading for the data since May 2011. The reading was an upward revision from the preliminary 50.9 result and an improvement from November’s PMI of 50.5.
The March contract was up three cents to $3.62 U.S. a pound. China is the world’s biggest consumer of copper, which is viewed as an economic barometer as it is used in so many applications.
The base metals sector rose as Turquoise Hill Resources tacked on 30 cents to $7.56 while First Quantum Minerals advanced 70 cents to $21.90.
Gold stocks also headed higher as Goldcorp Inc. climbed one dollar to $36.45 while Iamgold was ahead 42 cents to $11.40.
In the energy sector, Imperial Oil gained 52 cents to $40.90, and Suncor surged 58 cents to $32.80
Telecoms declined with Telus Corp. down 34 cents to $65.10.
On the corporate front, CIBC has agreed to pay $149.5 million U.S. to settle a claim with the Lehman Estate, which was set up after the collapse of a onetime Wall Street giant. The claims were filed against CIBC and numerous other financial institutions in September 2010, two years after the venerable investment bank Lehman Bros. went bankrupt.
The estate claimed CIBC was obliged to honour a commitment made under an agreement before the September 2008 collapse of the investment bank. CIBC shares slipped 50 cents to $80.05.
Bombardier Inc. says it has an order to supply Germany’s Abellio Rail with 35 of its Talent 2 trains in a deal valued at $226 million U.S. Bombardier announced in a release Monday that it will supply 20 three-car and 15 five-car trains, with the vehicles due to enter service in December 2015. Bombardier shares picked up three cents to $3.76.
ON BAYSTREET
The TSX Venture Exchange spiked 19.46 points to 1,221.30.
All but one of the 14 Toronto subgroups were higher to close the session. Gold stocks soared 2.5%, while materials were better by 2.4% and the metals and mining group gained 2.2%.
Only telecoms slid, and only 0.2% at that.
ON WALLSTREET
A rally on Wall Street accelerated Monday afternoon as investors welcomed signs a fiscal cliff deal is taking shape in Washington.
The Dow Jones Industrial Average galloped 166.03 points, or 1.3%, to 13,104.10
The S&P 500 moved up 23.26 points to 1,425.69. The Nasdaq Composite steamed forward 59.20 points to 3,019.51, with shares of Apple gaining 4.5%.
Overall, stocks have overall had a pretty good year, with all three indexes up between 6% and 14%. By comparison, stocks ended 2011 almost exactly where prices were at the start of the year, although there was a lot of up and down in between.
One of the only pieces of company news was a $665-million U.S. deal announced late Sunday to buy investment banking firm Duff & Phelps by a joint venture led by the Carlyle Group. The offer price represented a 19% premium over Duff & Phelps' stock close Friday.
The advance came on light volume, since many professional investors are away from their desks for the holidays, traders said. While an official agreement had yet to be announced by the closing bell, investors were relieved to see signs that lawmakers are able to agree on something, however modest.
Congress appears to be near an agreement to raise the income tax rate on top earners to what it was during President Bill Clinton's last term in office, according to sources close to the process.
The deal would also increase estate taxes, extend unemployment benefits and potentially put off the $110 billion U.S. in automatic spending cuts called for under the fiscal cliff, according to some media outlets.
Prices on the 10-year U.S. Treasury note fell, boosting yields to 1.76%. Treasury prices and yields move in opposite directions.
Oil prices regained 92 cents to $91.72 U.S. a barrel.
Gold prices hiked $14.90 to $1,673.80 U.S. an ounce.
