Canada's resource-heavy main stock index jumped Tuesday, the first trading day of the year, as improved Chinese manufacturing data signaled stronger demand for industrial metals.
The S&P/TSX Composite leaped 195.62 points, or 1.6%, in the first hour of trading to 12,150.71
The Canadian dollar bolted upward 0.83 cents to 98.98 cents U.S.
Among stocks to watch in this country, Vero Energy Inc. said it will sell some of its natural gas assets to a private oil and gas company for $209 million to reduce debt and focus on light oil drilling.
In analyst activity, Canadian National Railway saw its price target raised to $80 from $79 at Barclays, while rival Canadian Pacific Railway had its price target cut to $66 from $68, also at Barclays
ON BAYSTREET
The TSX Venture Exchange gained 16.98 points to 1,501.64, while the Nasdaq Canada index added 10.66 points to 382.
All 14 Toronto subgroups vaulted at the outset, led by global base metals, up 3.7%, metals and mining, ahead 3.6%, and materials, gaining 2.7%.
ON WALLSTREET
In New York, stocks opened the first trading day of 2012 with a rally, as investors welcome stronger manufacturing reports out of emerging economies.
The Dow Jones Industrials screamed higher by 232.57 points, or 1.9%, to begin the year's first session at 12,450.10
The S&P 500 perked 23.06 points to 1,280.66, while the Nasdaq Composite ticked 52.97 points higher to 2,658.12.
Over the weekend, the Chinese government released its official reading on manufacturing activity, showing the sector expanded slightly in December, after contracting the month before.
And on Monday, a report compiled by HSBC and Markit showed India's manufacturing activity picked up significantly during the month.
Investors worldwide are tuning in closely to economic numbers out of China in particular, because its rapid growth has led the global recovery -- but recent figures have shown some signs of weakness.
U.S. stocks finished little changed Friday, bringing to an end a year in which the S&P dropped just 0.04 points -- the smallest annual change in history.
The Dow rose 5.5% for the year, while the Nasdaq lost 1.8%.
Trading was slow all last week, with many investment professionals on break for the holidays.
Chesapeake Energy shares rose after the Oklahoma City-based energy company announced it completed a venture with an affiliate of French oil company Total that gives the French firm a 25% stake in more than 600,000 acres in eastern Ohio, an area rich in shale oil.
Mead Johnson Nutrition shares gained after two U.S. government agencies said they have completed their investigation of Enfamil and found the baby formula safe to use.
The Food and Drug Administration and the Centers for Disease Control and Prevention had stepped in after a newborn baby died of a rare bacterial infection that they suspected could be linked to the powder-based infant formula.
Economically speaking, the December installment of the Institute for Supply Management (ISM) Manufacturing Index, due after the market open, is expected to rise to 53.4 from 52.7 in November, according to a consensus of economists surveyed by Briefing.com. Any reading above 50 signals expansion in the sector.
The government will release data on construction spending for the month of November. Analysts surveyed by Briefing.com expect construction spending to have risen by 0.5%, after rising 0.8% in October.
Also on Tuesday, the Federal Reserve will release minutes from its Dec. 13 meeting.
Treasury prices for the 10-year note fell sharply, driving the yields up to 1.95% from 1.87% late Friday. Treasury prices and yields move in opposite directions.
Oil for February delivery gathered $3.36 to $102.19 U.S. a barrel.
Gold futures for February delivery rose $23.70 to $1,590.60 U.S. an ounce.
