The Toronto stock market advanced Friday after most members of the European Union signed on to a deal to tie their economies closer together to ensure there is no repeat of the current European debt crisis.
The S&P/TSX Composite Index ended the day 82.96 points higher to close a volatile week at 12,034.75
The Canadian dollar reversed early weakness even as financial markets looked for more details and wondered what support, if any, the European Central Bank can lend in helping keep borrowing costs under control. Our currency gained 0.41 cents to 98.16 cents U.S.
On the corporate level, the TSX focused on telecommunications giants Rogers Communications Inc. and BCE Inc. The two heavyweights announced Friday that they will acquire a 75% stake in Maple Leaf Sports and Entertainment, owner of the Toronto Maple Leafs, in a deal that will pay the Ontario Teachers Pension Plan, the current majority owner, $1.3 billion.
MLSE also owns the NBA’s Toronto Raptors, Major League Soccer’s Toronto FC, the Air Canada Centre and other assets. BCE shares edged up 10 cents to $40.70 while Rogers shares gained 83 cents to $37.90.
Commodity prices were mixed as the base metals sector led TSX advancers with the March copper contract ahead six cents to $3.56 U.S. a pound. Teck Resources gained 61 cents to $37.97 while First Quantum Minerals was up $1.06, or 5.4%, at $20.56.
Energy stocks were also higher with Suncor Energy gained 31 cents to $29.85 while Canadian Natural Resources was up 58 cents to $37.66.
Financial stocks also moved ahead with Manulife Financial ahead 16 cents to $11.32 and Royal Bank rising 66 cents to $49.47.
The gold sector advanced as Kinross Gold Corp. was ahead 12 cents to $13.61. Rival Goldcorp shares shed 45 cents to $51.20.
In other corporate news, a spokesman for the Maple Group isn’t confirming a report that the consortium of financial institutions has hit a roadblock in its plan to buy and combine the Toronto Stock Exchange with a smaller, bank-owned trading system.
A Globe and Mail online report cited unnamed sources as saying there was a disagreement over how much it would cost Maple to acquire the Alpha trading system and combine it with TMX Group, which operates Canada’s largest stock market. TMX Group made its way into the green 28 cents to $43.00.
Economically speaking, our merchandise exports declined 3.0% in October, according to figures released by Statistics Canada, and imports rose 1.9%. As a result, Canada's trade balance with the world went from a surplus of $1.0 billion in September to a deficit of $885 million in October.
ON BAYSTREET
The TSX Venture Exchange gained 29.93 points to 1,547.31, while the Nasdaq Canada index added 5.66 points to 388.81
All but two of the 14 Toronto subgroups gained ground, led by global base metals, up 2.7%, metals and mining, ahead 2.4%, and health-care, gaining 1.9%.
The lone laggard was in utilities, off 0.3%, while the telecoms sector was unchanged on the day.
ON WALLSTREET
In New York, stocks rallied Friday after a majority of European leaders agreed on a new deal to try to resolve the euro-zone debt crisis.
The Dow Jones Industrials climbed 186.56 points, or 1.6%, to end the week at 12,184.30
The S&P 500 tacked on 20.83 points, to 1,255.18, while the Nasdaq Composite strengthened 50.47 points to 2,646.85.
Despite the week's ups and downs, the Dow is up 1.3% for the week so far, while the S&P 500 is 0.8% higher and the Nasdaq is up 0.5%.
The U.S. financial sector outperformed the broader market in early trading with Bank of America, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo up between 1.5% and 4%. The rally in financials helped erase some of the industry's outsize losses from Thursday.
DuPont shares plunged after the chemical maker lowered its forecasts for the year. DuPont CEO Ellen Kullman cited slower growth and global economic uncertainty as reasons for the lower outlook.
Meanwhile, Texas Instruments shares were lower after the microchip maker lowered its forecasts for both fourth-quarter earnings and revenue in an announcement after the bell Thursday.
General Electric shares rose after the company said it is raising its quarterly dividend by 13%. It was the fourth time GE has increased its dividend since July 2010.
During a meeting in Brussels, Belgium, early Friday, the 17 members of the euro-zone -- which share the embattled single currency -- reached a deal for a new inter-governmental treaty to deepen the integration of national budgets.
Six other E.U. nations supported the deal, but Britain rejected it. The three remaining E.U. countries tentatively support the deal, but have yet to secure parliamentary approval. Leaders are aiming to have the plan ready by March.
European and U.S. stocks rallied on the news, ignoring the Moody's downgrade of three top French banks: BNP Paribas, Credit Agricole SA and Société Générale.
Meanwhile, a Reuters report that China is creating a $300-billion U.S. fund to invest in both Europe and the United States could also be lending support to markets.
On the economic front, the government released its latest trade data for October, showing the U.S. trade deficit dipped slightly to $43.5 billion U.S. The number was in line with estimates, but deeper in the red from the $43.1-billion U.S. deficit in the prior month.
The December installment of the University of Michigan's Consumer Sentiment Index beat expectations, rising to 67.7 from 64.1 in November. Analysts were expecting a rise to 65.1.
The price on the benchmark 10-year U.S. Treasury slipped, pushing the yield up to 2.05%, from 1.97% late Thursday. Treasury prices and yields move in opposite directions.
Oil for January delivery moved higher by $2.16 to $99.50 U.S. a barrel.
Gold for February delivery gained $3.40 to settle at $1,716.80 U.S. an ounce.
