The Toronto stock market made an enthusiastic gain on Tuesday as commodities prices strengthened alongside a round of U.S. earnings reports that gave traders further confidence.
The S&P/TSX composite index rose 177.74 points to 12,407.70 on strength across every sector led by gold and materials stocks. The TSX Venture Exchange gained 17.05 points to 1,299.78.
The Canadian dollar fell US0.70¢ to US101.34¢, coming off a steeper decline of US0.83¢ earlier in the session.
In commodities, December gold bullion rose US$8.70 to US$1,746.30 an ounce, while TSX gold stocks led gainers. Copper prices were relatively unchanged with the December contract at US$3.70 a pound.
Oil prices were slightly higher with the November contract on the New York Mercantile Exchange up 24¢ to US$92.09 a barrel, while the TSX energy sector gained 1.1%.
The latest comments from Bank of Canada governor Mark Carney late Monday afternoon were also a factor.
A speech by Carney left economists debating the importance of his leaving out an often-repeated phrase that "modest withdrawal of the present considerable monetary policy stimulus may become appropriate."
The central bank's pronouncements are closely watched by economists as a signal of change in interest rate policies, which can affect currency rates.
On Wall Street, a flurry of earnings reports gave traders much to chew on, with major companies in the health-care, banking and consumer industries reporting quarterly results. The Dow Jones industrials rose 127.55 points to 13,551.78, the Nasdaq composite index added 36.99 points to 3,101.17 and the S&P 500 index was up 14.79 points to 1,454.92.
Canada's Loblaw Companies Ltd. is planning to cut about 700 jobs at its operations, mostly in administration and management, as it looks to cut costs. Loblaw shares rose 84¢ to $34.72.
Meanwhile, the Labor Department said that U.S. consumer prices rose 0.6% in September because of more expensive gas.
In Europe, an unexpectedly large improvement in German investor confidence, as surveyed by the ZEW institute, also helped shore up sentiment. The rise in confidence also gave the euro some lift.
The euro has also garnered support from expectations that Spain will soon make a request to tap a European Central Bank bond-buying facility and that Greece will get its next batch of bailout funds. The problems of both debt-ridden countries are likely to be featured at a meeting of EU leaders later this week.
