The Toronto stock market finished higher Wednesday as investors took in stronger than expected inflation data and news that Greek parliament has passed a tough austerity bill.
The S&P/TSX Composite Index grew 83.96 points to end the day at 13,188.90
The Canadian dollar picked up 1.14 cents to 103.05 cents U.S.
Investors also took in news that Greece’s lawmakers have approved a key austerity bill, paving the way for the country to get its next vital bailout loans that will prevent it from defaulting next month.
The unpopular euro28-billion ($40-billion U.S.) five-year package of spending cuts and tax hikes was backed by a majority of the 300-member parliament Wednesday, including Socialist deputy Alexandros Athanassiadis, who had previously vowed to vote against.
The European Union and International Monetary Fund have demanded the austerity measures pass before they approve the release of a euro12-billion loan installment from last year’s rescue package.
Without those funds, Greece would be facing a default by the middle of July.
Commodity traders appeared upbeat about the Greek debt situation and its impact on the global recovery.
In corporate news, Shaw Communications Inc. third-quarter profits rose to $203 million, or 45 cents per share, compared to a profit of $158 million or 37 cents per share in the same period a year earlier. Operating revenue rose 36% to $1.28 billion from $943.6 million.
Shares gained 37 cents to $21.63.
Yellow Media Inc. says it has received government approval for the $745-million sale of the Trader Corp. auto sales directory business to London-based private equity firm Apax Partners for $745 million. Its stock has been falling on concerns over the company’s transition from print to digital. Shares added 18% or 41 cents to $2.69.
Niko Resources Ltd., which has recently been the centre of a bribery case with a Bangladeshi government official, fourth-quarter net income tumbled to $649,000 U.S., or 77 cents per share.
That’s down from a profit of $38.7 million or 41 cents per share in the same period a year earlier. Shares fell 1.4% or 85 cents to $60.55.
Patent specialist Wi-LAN Inc. has acquired 60 U.S. mobile phone patents and foreign counterparts for $8 million from Glenayre Electronics Inc., the Ottawa-based company announced Wednesday.
Shares gained seven cents to $7.49 apiece.
Economically speaking, Statistics Canada report that the country’s annual inflation rate jumped to the highest level in eight years last month, rising to 3.7% as big increases in gasoline prices pushed the index to a new post-recession peak.
On a month-to-month basis, consumer prices rose by a significant 0.7% in May from where they were in April.
The surprisingly strong results present Bank of Canada governors with a dilemma, less than three weeks before their meeting to set short-term interest rates for the country.
The bank had warned it expected inflation to push above 3% during the spring, but few expected it would hit such elevated levels. It has now been above 3% for three consecutive months.
ON BAYSTREET
The TSX Venture Exchange gained 26.68 points to 1,892.36, while the Nasdaq Canada index moved forward 9.90 points to 548.98
In Toronto, all but three of the 14 subgroups improved on the day. Metals and mining stocks gained 2.1%, materials and information technology grew 1.4% each.
The three laggards were health-care issues, off 0.3%, while real-estate and industrial stocks faded 0.2% each.
ON WALLSTREET
In New York, stocks managed steady gains Wednesday, with bank shares boosting the broader market following Bank of America's $8.5-billion U.S. settlement over mortgage securities claims.
Aside from a small blip, stocks stayed higher for most of the session following Greece's approval of austerity measures, which are meant keep the country from defaulting
The Dow Jones Industrial Average gained 72.73 points to 12,261.40
Bank of America was the biggest gainer on the blue-chip index, with shares rising 2% after the bank announced a multi-billion-dollar settlement.
Other banks stocks followed suit, with shares of Citigroup, Wells Fargo and JPMorgan Chase all moving higher.
The S&P 500 moved up 10.74 points to 1,307.41. The Nasdaq Composite was up 11.18 points at 2,740.49.
Shares of Visa and Mastercard shot up 10% on reports that the new debit card swipe fees may not be as strict as had previously been expected.
Metals and industrial stocks were also strong Wednesday. US Steel was the top performer on the S&P 500, rising 6%, after the company was upgraded to "buy" by Deutsche Bank analysts.
Competitor AK Steel was the second-best performer on the index
KB Home shares sank 9%, after the homebuilder reported a second-quarter loss.
Monsanto's earnings widely beat expectations, which the company attributed to strength in its seeds business. Shares of Monsanto rose 5%.
On the economic front, the National Association of Realtors said that pending home sales rose a better-than-expected 8.2% in May, recovering in part from April's dismal 11.6% decline.
The price on the benchmark 10-year U.S. Treasury was down, boosting yields to 3.11% from Tuesday’s 3.04%. Treasury prices and yields move in opposite directions.
Oil prices gained $2.05 to $94.94 U.S. a barrel
Gold futures for August delivery rose $10.20 to $1,510.40 U.S. an ounce; while silver rallied 3.3% to $34.76 U.S. an ounce.
