The Toronto stock market started 2012 trading with a solid advance as commodity prices rose in the wake of strong manufacturing data, while oil prices got extra lift from rising tensions between the West and Iran.
The S&P/TSX Composite leaped 143.10 points, or 1.2%, to approach noon 12,098.19
The Canadian dollar bolted upward 0.91 cents to 99.07 cents U.S.
Energy stocks soared, as Canadian Natural Resources climbed $1.14 to $39.29.
The base metals sector jumped as copper prices also advanced following the Chinese data. Copper is viewed as a key economic barometer because it is widely used in infrastructure projects and consumer products and China is the biggest buyer of the metal. The March contract in New York gained seven cents to $3.51 U.S. a pound. Teck Resources advanced $1.67 to $37.58.
The gold sector as a weak U.S. dollar helped push bullion higher. Among gold issues, Goldcorp Inc. was up 77 cents to $45.98.
The financials sector was up as Royal Bank rose 68 cents to $52.66.
Among industrials, Canadian National Railways was ahead 93 cents to $81.08, Potash Corp. of Saskatchewan gaining $1.54 to $43.65 and Magna International improving by 79 cents to $34.79.
In corporate developments, Athabasca Oil Sands Corp. stock rose 40 cents to $12.89 as it exercised an option to sell its remaining 40% interest in the MacKay River oilsands project to a unit of Chinese oil giant PetroChina for about $680 million. The deal gives PetroChina full ownership of MacKay River project, one of the newest of northern Alberta’s oilsands developments.
Vero Energy Inc. has agreed to sell some of its natural gas assets for $209 million to pay off debt and refocus on light oil drilling. Its shares surged 55 cents or 26.44% to $2.63.
ON BAYSTREET
The TSX Venture Exchange gained 13.74 points to 1,498.04, while the Nasdaq Canada index added 14.58 points to 385.92.
All but two of the 14 Toronto subgroups were ahead at the lunch break, led by global base metals, up 4.3%, metals and mining, ahead 3.5%, and materials, gaining 3.1%.
The two laggards were telecoms and consumer staples, each off 0.5%.
ON WALLSTREET
In New York, stocks rallied Tuesday, kicking off the New Year on a high note, as investors welcomed upbeat reports on economic activity around the world.
The Dow Jones Industrials jumped 219.41 points, or 1.8%, to greet lunch hour at 12,437.
The S&P 500 soared 23.79 points to 1,281.39, while the Nasdaq Composite ticked 47.70 points higher to 2,652.85.
The gains came after reports on manufacturing growth in China and India came in better than expected over the weekend. On Tuesday, an index showed U.S. manufacturing activity expanded at a faster rate in December.
Investors scooped up shares of companies that would benefit from a strengthening global economy.
Bank stocks, which were among the worst performing sectors last year, led the Dow higher. Bank of America, Citigroup and JPMorgan all posted strong gains in the early going.
Industrial names Caterpillar and Alcoa were strong, as were multinationals such as GE and Microsoft and 3M.
But traders say the market is vulnerable to concerns about the debt crisis in Europe, which has been the main driver of stock prices for several months.
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.
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.
Economically speaking, U.S. Institute for Supply Management said its survey for December showed the manufacturing index expanding more than expected, coming in at 53.9, better than the expected reading of 53 and higher than the 52.7 reading registered in November.
The Commerce Department said construction spending jumped 1.2% in November, after a revised 0.2% decline in October. Analysts surveyed by Briefing.com expect construction spending to have risen by 0.5%.
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 1.93% from 1.87% late Friday. Treasury prices and yields move in opposite directions.
Meanwhile, oil prices surged nearly 4% on continued anxiety over Iran's growing threat to shut down the Strait of Hormuz.
Oil for February delivery gathered $3.44 to $102.27 U.S. a barrel.
Gold futures for February delivery rose $32.80 to $1,599.60 U.S. an ounce.
