Stocks on Bay Street traded positive Tuesday -- as investors bought up gold and mining stocks while news that Bank of Montreal snapped up a piece of troubled U.S. insurer American International Group also added to the buying.
The S&P/TSX composite index was up 168.22 points to 8,961.55.
Bank of Montreal shares were higher after it announced that it is buying AIG Life Insurance Company of Canada in an all-cash transaction worth $375 million. The price is still subject to any change in the AIG division's book value at time of closing. The deal, which is still subject to regulatory approval, is set to close on June 1.
CAE Inc. shares climbed after it said it has won a $60 million contract to build five flight simulators. The company says the contracts are with Continental Airlines, Air China and Shandong Airlines.
Talisman Energy Inc. shares rose after it said its capital spending for 2009 will come in at $4 billion, roughly $1 billion less than it spent in 2008.
On the data front -- Canada's trade surplus with the world fell to $1.3 billion in November from a revised $2.3 billion in October. Exports slid for the fourth straight month, dropping 6.8 percent to $39.2 billion, the result of falling prices and lower volumes, while the volume of exports fell 2.3 percent.
Similarly, a combination of price and volume reductions pushed Canada's imports down 4.8 percent to $38 billion, while the volume of imports fell 2.3 percent.
Down south -- the Commerce Department said the trade deficit narrowed to $40.1 billion, the slimmest in five years and narrowed from $56.7 billion a month prior. Economists had expected the deficit to narrow significantly with the fall of oil prices impacting imports, but underestimated the extent, with predictions for $51 billion.
For the three months ending in November, the average trade deficit was calculated at $51.2 billion, vs. $57.4 billion for the three months prior.
The Canadian dollar, meanwhile, traded 0.62 cents lower at 81.59 cents US.
BAYSTREET
Twelve of the TSX sub-groups traded higher today -- gold stocks were up 3.92 percent, mining issues were ahead 2.72 percent and energy stocks were up 2.67 percent.
COMEX gold for February delivery down 30 cents to settle at $820.70 an ounce.
On the downside -- real-estate stocks were off 0.52 percent.
Meanwhile, the TSX Venture Exchange was 9.45 points lower at 868.90 and the NASDAQ Canada was off 0.98 points at 473.95.
ON WALLSTREET
Stocks in New York ended Tuesday's seesaw trading session narrowly mixed as investors, who earlier lent an ear to Federal Reserve Chairman Ben Bernanke, weighed earnings and more job losses symptomatic of the economic downturn.
The Dow Jones Industrial Average sank 25.41 points, or 0.3 percent, to 8448.56. The S&P 500 edged up 1.49 points, or 0.2 percent, at 871.75, and the Nasdaq rose 7.67 points, or 0.5 percent, to 1546.46.
Alcoa kicked off earnings season late Monday, posting a $1.2 billion loss in the fourth quarter on steep declines in demand for aluminum.
Citigroup confirmed in a statement Tuesday that it is in talks to merge its Smith Barney brokerage business with Morgan Stanley's wealth management business. A deal is expected to be announced in the next two days, although the company said it couldn't assure an agreement would be reached.
In other news -- ING said Tuesday that it would add to the nation's unemployed, slashing 750 domestic jobs, or 8 percent of its workforce by the quarter's end.
Yahoo! is reportedly set to name Carol Bartz, former chief executive of software company Autodesk, as its new chief executive.
Longer-dated Treasuries were recently mixed; the 10-year note was adding 3 0.5/32 to yield 2.3 percent, and the 30-year was down 15/32, yielding 3 percent. The American dollar was recently weaker against the euro and pound, and yen.
U.S. light crude oil for February delivery fell 19 cents to settle at $37.78 US a barrel on the New York Mercantile Exchange.
