Equity markets in Toronto moved back into positive territory in a big way on Tuesday, with Talisman Energy Inc surging 46.7% after Spanish oil major Repsol agreed to buy the independent producer for $13 billion.
The S&P/TSX composite index gained 156.38 points, or 1.1%, to finish Tuesday at 13,861.52
The Canadian dollar recovered 0.26 cents to 85.94 cents U.S.
A near halving in the global oil price since June has lowered price tags on producers like Talisman. Repsol has long been searching for oil and gas assets in North America and elsewhere. Talisman gained $2.79 to close at $8.76.
The weakness in oil has hurt Canada's stock markets, which have a large contingent of energy producers. The S&P/TSX composite index had lost 10% of its value in the last month, prior to Tuesday's rise. It is roughly flat for the year.
Elsewhere in the oil patch, Canadian Natural Resources gained 76 cents, or -2.4% to $32.61 on Tuesday, while Suncor Energy was up $1.79, or 5.7%, to $33.16
In the financial sector, Royal Bank of Canada gained 92 cents, or 1.2%, to $78.50 and Toronto-Dominion Bank was up 46 cents, or 0.9%, at $52.59.
Industrial stocks were also stronger, with Horizon North Logistics triumphing 27 cents, or 14.4%, to $2.14, while Black Diamond Group climbed 70 cents, or 5.3%, to $13.94.
Gold stocks took their lumps, though, with Alamos Gold pummeled 63 cents, or 7.8%, to $7.47, and Pretium Resources suffering 48 cents, or 7.7%, to $5.74.
In the economic docket, Statistics Canada reported that manufacturing sales declined 0.6% in October.
The agency also said foreign investment in Canadian securities strengthened to $9.5 billion in October, of both bonds and equity instruments. At the same time, Canadian investment in foreign securities slowed to $293 million, down from an $8.3-billion investment in September.
ON BAYSTREET
The TSX Venture Exchange turned negative 0.94 points to 642.35
Eight of the 14 Toronto subgroups gained ground, on the day, led by a 6% surge in energy stocks, while industrials picked up 1.8%, and telecoms advanced 1.2%.
The half-dozen laggards were weighed by gold, down 1.6%, materials, down 1%, and health-care, sliding 0.6%.
ON WALLSTREET
U.S. stocks fell for a sixth session in the last seven on Tuesday, after another day of gyrations as equities tracked the price of oil and pondered the impact of lower energy costs and Russia's economic troubles on policy decisions by the Federal Reserve.
The Dow Jones Industrials fell 111.97 points to close the day at 17,068.87.
The S&P 500 shed 16.89 points to 1,972.74, with consumer discretionary falling the most and energy the best performing of its 10 major sectors.
The NASDAQ index tumbled 57.33 points to 4,547.83.
Boeing led blue-chip gains that included seven of 30 components after the plane manufacturer said it would hike its quarterly dividend 25%.
New-home construction in the U.S. topped a million on an annualized rate in November, while housing starts fell 1.6% and building permits declined 5.2% last month.
An industry report on Tuesday had the U.S. manufacturing sector continuing to expand in December but its growth rate at an 11-year low.
Wall Street is also looking to hear from the Federal Reserve on Wednesday, with the central bank gathering to consider the timing and size of interest-rate hikes and whether to reiterate its vow to maintain rates low for a considerable period.
Prices for 10-year U.S. Treasuries gained, lowering yields to 2.07% from Monday’s 2.12%. Treasury prices and yields move in opposite directions.
Oil prices regained 17 cents per barrel to $56.08 U.S.
Gold prices deducted $11.90 an ounce at $1,195.80 U.S.
