Markets throughout North America burst out of the starting gate, after U.S. lawmakers reached the all-important deal to avert the fiscal crisis in the world's largest economy.
In Toronto, for instance, the S&P/TSX composite index soared 126.36 points, or 1%, to begin 2013 at 12,559.89
The Canadian dollar gained 0.98 cents to 100.60 cents U.S.
ArcelorMittal, the world's biggest steelmaker, will sell a 15% stake in one of its Canadian iron ore operations, raising $1.1 billion U.S. to help pay off debt at a time of sluggish demand.
Economically speaking, a survey came out Wednesday suggesting only a marginal improvement in business conditions.
The December RBC Canadian Manufacturing PMI indicated minimal improvement in business conditions in the month with an index reading of 50.4 being just marginally above the so-called breakeven level of 50. The index was unchanged from the November level which halted a steady five-month decline in this measure since a recent peak in June of 54.8
ON BAYSTREET
The TSX Venture Exchange prospered 19.30 points to 1,240.60.
All 14 Toronto subgroups surged ahead, led by metals and mining, up 2.8%, global base metals, gaining 2.3%, and materials, picking up 2.1%.
ON WALLSTREET
U.S. stocks surged into the New Year, following world markets higher Wednesday, a day after U.S. lawmakers reached a last minute deal to avert the fiscal cliff.
The Dow Jones Industrial Average exploded 264.64 points, or 2%, to begin the year’s first session at 13,368.80
The S&P 500 moved up 30.47 points to 1,456.66. The Nasdaq Composite rocketed 75.90 points to 3,095.41
The market's early gains were broad, with shares of Apple and Bank of America both rising 4%. United States Steel jumped 5%.
Investors cheered the late-night deal reached by the House that keeps the Bush tax cuts in place for most Americans, but raises the tax rate on individuals earning more than $400,000 and married couples earning over $450,000 U.S.
Lawmakers allowed the payroll tax cut to expire but extended federal emergency unemployment insurance benefits for another year.
Investors ignored any downsides to the deal, including Congress's failure to tackle automatic spending cuts, which are now set to go into effect March 1. Additional -- and perhaps more intractable -- challenges remain. Congress must soon raise the debt ceiling, and figure out plans for the postponed spending cuts and the federal budget.
This morning, the Institute for Supply Management will release its monthly manufacturing index for December, and the Census Bureau will release its data on construction spending in November.
In company news, Avis Budget Group announced it will acquire Zipcar for $12.25 U.S. a share -- a 49% premium over its closing price on Monday. Zipcar shares rose nearly 50%.
Prices on the 10-year U.S. Treasury note sagged, boosting yields to 1.83% from Monday’s 1.76% Treasury prices and yields move in opposite directions.
Oil prices spiked $1.59 to $93.41 U.S. a barrel.
Gold prices hiked $11.80 to $1,687.60 U.S. an ounce.
