By RTT News, October 10, 2013, 04:42:00 PM EDT
(RTTNews.com) - Canadian stocks settled sharply higher Thursday, tracking rising global equity markets, led mostly by resource and financial stocks amid hopes of a deal that would temporarily raise the U.S. debt ceiling.
Lawmakers in Washington finally seem to be moving toward a resolution to the fiscal crisis, with House Republican leadership proposing legislation to temporarily raise the nation's debt limit in order to avoid a default and allow time for negotiations. President Barack Obama signaled that he is ready to accept a short-term debt limit deal without policy conditions.
Asian stocks settled mixed after minutes of the Federal Reserve's September 17-18 meeting revealed officials struggled with a decision not to taper its quantitative easing program. Meanwhile, European shares ended firmly higher after the European Central Bank reiterated its accommodative monetary policy as long as necessary, indicating key interest rates would remain at present or lower levels for an extended period of time.
The S&P/TSX Composite Index closed Thursday at 12,894.41, up 164.08 points or 1.29 percent. The index touched an intraday high of 12,934.61 and a low of 12,730.33.
The Diversified Metals & Mining Index gained 1.63 percent, with First Quantum Minerals Ltd. (FM.TO) gaining 2.65 percent, Teck Resources Limited (TCK.B.TO) up 1.17 percent, and Lundin Mining Corp. (LUN.TO) up 2.77 percent. Osisko Mining Corp. (OSK.TO) slipped 0.95 percent.
The Capped Materials Index shed 0.35 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) dropping 1.49 percent
The Global Gold Index dropped 0.70 percent, with gold futures for December delivery down $$10.30 or 0.8 percent to close at $1,296.90 an ounce Thursday on the Nymex.
Among gold stocks, Yamana Gold Inc. (YRI.TO) dropped 3.15 percent, while Barrick Gold Corp. (ABX.TO) gained 1.04 percent. Goldcorp Inc. (G.TO) dropped 1.52 percent, while Kinross Gold Corp. (K.TO) shed 1.41 percent, Eldorado Gold Corp. (ELD.TO) slipped 0.94 percent.
Crude oil prices ended sharply higher Thursday, on supply concerns following developments in Libya and the Organization of the Petroleum Exporting Countries lifting its global oil demand forecast. Hopes of a deal that would temporarily raise the debt ceiling in the U.S. also supported oil prices.
The Energy Index gained 2.13 percent, with U.S. crude oil futures for November delivery surging $1.40 or 1.4 percent to close at $103.01 a barrel Thursday on the Nymex.
Among energy stocks, Suncor Energy Inc.(SU.TO) gained 1.01 percent, while Enbridge Inc.(ENB.TO) added 0.05 percent. Imperial Oil Limited (IMO.TO) shed 0.13 percent, while Encana Corp. ( ECA ) edged up 0.06 percent. Talisman Energy Inc. (TLM.TO) dropped 1.47 percent.
The Financial Index moved up 1.55 percent with Bank of Montreal (BMO.TO) adding 1.24 percent, while Manulife Financial Corp. (MFC.TO) gained 2.86 percent. The Bank of Nova Scotia (BNS.TO) added 1.31 percent, while Toronto-Dominion Bank (TD.TO) gathered 1.32 percent. Royal Bank of Canada (RY.TO) rose 1.94 percent, while National Bank of Canada (NA.TO) gathered 0.81 percent.
The Information Technology Index added 1.33 percent, with smartphone maker BlackBerry Limited (BB.TO) adding 0.59 percent.
The Capped Industrials Index gathered 1.41 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) gaining 1.44 percent and Air Canada (AC.B.TO) jumping 4.26 percent.
Space hardware subsystems maker COM DEV International Ltd. (CDV.TO) jumped 5.91 percent after announcing that it has received contract is in excess of $65 million.
In economic news Statistics Canada said the New Housing Price Index rose 0.1 percent in August, following a 0.2 percent increase in July. Economists expected the index to rise 0.2 percent in August.
In economic news from the U.S., the Labor Department said initial jobless claims jumped to 374,000, an increase of 66,000 from the previous week's unrevised figure of 308,000. Economists expected jobless claims to edge up to 310,000. The Labor Department said half of the increase in claims was due to a California computer switch, with the ongoing government shutdown also contributing to the jump in claims.
Elsewhere, the Bank of England retained its record-low interest rate and the size of quantitative easing at GBP 375 billion on Thursday. The nine-member Monetary Policy Committee headed by Mark Carney decided to keep the key interest rate unchanged at a historic low 0.50 percent.
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