TSX closes higher amid mixed economic data, uncertainty over fiscal cliff talks

TORONTO — The Toronto stock market closed slightly higher amid a mixed bag of economic data while traders kept a close eye on how U. S. budget negotiations are progressing.

The S& P/ TSX composite index gained 36.19 points to 12,239.04. The TSX Venture climbed 2.52 points to 1,220.9 with traders unwilling to make big commitments while Democrat and Republican leaders wrangle over ways to avoid steep spending cuts and significant tax increases from kicking in automatically in January if there’s no deal.

“No one is wanting to step in and take a position ahead of seeing if there’s a resolution with the fiscal cliff,” said Jennifer Dowty, portfolio manager at Manulife Asset Management.

“In order to get the markets moving, we need to see a fiscal cliff resolution. Until that time, the markets, I think, are just going to lack momentum and continue to trade sideways.”

The Canadian dollar was down 0.09 of a cent to 100.64 cents US as the economy stalled out during September. Statistics Canada reported there was no growth in gross domestic product during that month following a 0.1 per cent dip during August.

That translated into third quarter economic growth of 0.6 per cent on an annualized basis, versus expectations of 0.8 per cent growth.

The agency said the disappointing performance reflected exports, which fell two per cent in the third quarter.

New York markets were little changed amid a mixed bag of economic data.

The Dow Jones industrials added 3.76 points to 13,025.58 after a government report showed that consumers cut back on spending last month with no growth in personal income.

U. S. consumer spending dropped 0.2 per cent in October. That’s down from an increase of 0.8 per cent in September and the weakest showing since May.

Like previous economic reports, the Commerce Department’s consumer spending report was skewed by superstorm Sandy which struck the northeast coast.

That report was tempered by a positive reading of the manufacturing sector in the American Midwest. The Chicago Purchasing Managers Index for November moved into expansion territory, rising to 50.4 from 49.9 in October.

Other data showed eurozone unemployment at a record high. Heidi Lawlor, from Scotiabank, presents a corporate donation to Kris O’Brien, representing the United Way of P. E. I. The United Way is celebrating its 50th anniversary of helping Islanders and through the years it has received major support from the province’s business community.