TSX up as U.S. data raise recovery hopes
Written on December 24, 2009
The Toronto stock market closed higher Tuesday following indications of an improving U.S. economy.
The S&P/TSX composite index advanced 73.26 points to 11,627.98 as U.S. home resales surged to the highest level in nearly three years in November.
"Right now it appears that investors are just also sort of raising their expectations for global growth, that’s helping commodities, tending to help everything," said Kate Warne, Canadian market specialist at Edward Jones in St. Louis, Mo.
"So it’s the good news out of the U.S. but it’s the general feeling where everyone has decided the world looks somewhat better."
The Canadian dollar rose 0.31 of a cent (U.S.) to 94.53 cents.
The base metals sector was up 0.85 per cent with March copper declining two cents to $3.14 a pound.
The TSX energy sector was up 0.71 per cent as the OPEC cartel said it is holding its output quotas unchanged. The February crude contract in New York climbed 68 cents to $74.40 a barrel.
The tech sector was a drag with Research In Motion $2.67 (Canadian) lower to $71.21. The stock surged more than 10 per cent last week in the wake of an earnings report that blew past expectations.
New York indexes chalked up a solid advance on the housing data with the Dow Jones industrial average closing up 50.79 points to 10,464.93, the Nasdaq composite index was ahead 15.01 points to 2,252.67. The S&P 500 index rose 3.97 points to 1,118.02.
The U.S. National Association of Realtors says sales rose 7.4 per cent to a seasonally adjusted annual rate of 6.54 million in November, from a downwardly revised pace of 6.09 million in October.
The TSX Venture Exchange dipped 6.2 points to 1,421.97.
The Toronto financial sector was ahead 0.72 per cent a day after regulators approved $138.8 million in settlements which banks will pay for their role in the asset-backed commercial paper meltdown.
The gold sector was slightly higher as February gold on the New York Mercantile Exchange dropped $9.30 (U.S.) to $1,086.70 an ounce.
Warne said trading is expected to be light throughout the holiday-shortened week, which can exaggerate price swings. Markets close early on Christmas Eve and are closed Friday for Christmas.
"Assuming that there is no news, it will be a quiet few days," she said.
The Canadian Press
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