Canadian stocks moved higher with their American cousins Tuesday as the Toronto market’s main measure gained in morning action.
The S&P/TSX Composite Index zoomed higher by 177.18 points, or 1.5%, to conclude a successful session at 11,716.88
The Canadian dollar gained 0.73 cents to 97.04 cents U.S., after data showed Canada’s inflation was in line with expectations in November.
TransCanada Corp. gained 30 cents to $43.74. The company said early Tuesday it will pay roughly $454 million to Canadian Solar Inc. to build nine utility-scale solar projects in Ontario.
Under terms of the companies’ agreement, TransCanada will purchase each project as it begins commercial operation. Canadian Solar’s shares jumped 35.3% in New York to $2.99 U.S. apiece.
Shares of Barrick Gold Corp. rose 2.5% to $47.44 and Goldcorp gained 76 cents or 1.7% to $46.90.
First Quantum Minerals Ltd. traded 4.9% higher to $19.17, and Thomson Creek Metals Co. added 2.7% to $7.12.
Research In Motion Ltd. shed another 3.5% to $12.90, adding to losses incurred since it delivered both a disappointing earnings report and profit forecast last week.
Shares in Imperial Oil tacked on 66 cents to $43.13, while rival Suncor Energy gained 50 cents, or 1.8%, to $28.01, and Canadian Natural Resources added $1.14, or 3.3%, to $36.26.
On the economic scene, Statistics Canada reported the country’s annual inflation rate remained relatively high at 2.9% last month as Canadians continued to pay considerably more for food and gasoline than they had 12 months earlier.
Statistics Canada added that grocery prices were up 5.7% in November compared with a year ago as consumers saw double-digit increases for such basics as fresh vegetables and bread. The figures included a 1.3% jump from October alone.
ON BAYSTREET
The TSX Venture Exchange jumped 32.90 points to 1,440.29, while the Nasdaq Canada index gained 8.04 points to 354.90
All 14 Toronto subgroups popped, led by global base metals, moving up 4%, metals and mining, jumping 3.6%, and materials, ahead 3.3%.
ON WALLSTREET
In New York, stocks surged Tuesday as concerns about the European debt crisis eased and investors welcomed signs of strength in the U.S. housing market.
The Dow Jones Industrials vaulted 337.32 points, or 2.9%, to end the day at 12,103.60
The S&P 500 picked up 35.86 points, to 1,241.21, while the Nasdaq Composite charged up 80.59 points to 2,603.73
Banking stocks were among the best performers, after the sector dragged down the broader market Monday.
Bank of America was up 2.9% to $5.13 U.S. a share, one day after the stock fell below $5 U.S. per share. Citigroup, Goldman Sachs, JPMorgan, Morgan Stanley and Wells Fargo all moved higher.
Shares of Jefferies rallied as much as 22% Tuesday after the company released fourth-quarter profits that beat analysts' expectations. Revenues were lighter than expected, though.
Shares of Apple were up after the U.S. International Trade commission ruled Monday that the software in some of HTC's Android smartphones violated one provision of an Apple patent, and that those phones would no longer be allowed into the U.S.
Google shares rose after the company said it would acquire a portfolio of solar photovoltaic facilities with KKR. The deal brings Google's total investment in renewable energy projects to more than $915 million U.S.
Food producer General Mills reported quarterly earnings of 76 cents U.S.per share, slightly missing estimates. Analysts surveyed by Thomson Reuters expected earnings of 79 cents U.S. per share.
Carnival Corporation was under pressure after the cruise operator's quarterly results and outlook fell short of expectations.
Late Monday, AT&T announced it had abandoned its $39-billion U.S. bid for T-Mobile,a deal that would have created by far the nation's largest wireless company.
Red Hat shares fell 9% after the maker of open source software reported quarterly results late Monday that missed analysts' estimates.
The gains came despite the release of a highly anticipated set of proposals from the Federal Reserve to strengthen regulation and oversight of the banking sector.
Investors focused on positive headlines out of Europe, including an upbeat reading on German consumer confidence and a surprisingly strong auction of Spanish debt.
Traders were also looking forward to the results of a key lending program by the European Central Bank on Wednesday. The E.C.B. announced a series of "non-standard" measures earlier this month designed to boost liquidity for European banks struggling to secure funding in the wholesale market.
Analysts expect banks to borrow up to €300 billion under the first of the E.C.B's three-year refinancing operations. The banks could use the money to buy government bonds, among other assets.
Economically speaking, U.S. housing starts increased by 9.3%, to an annualized pace of 685,000 in November, from 627,000 in October, with building permits rising 1.8% to 681,000 compared to last year.
Market expectations going into the report had been for much fewer housing starts at 635,000
The price on the benchmark 10-year U.S. Treasury sagged, pushing the yield up to 1.92% from 1.81% Monday. Treasury prices and yields move in opposite directions.
Oil for January delivery progressed $3.24 to $97.12 U.S. a barrel.
Gold futures for February delivery rose $20.90 to settle at $1,617.60 U.S. an ounce.
