TSX, U.S. markets both advance
Canadian dollar shakes off losses, closes above par with U.S.
— The Toronto stock market registered a solid advance Thursday as resource sectors benefited from signs of a recovering Chinese manufacturing sector. But the market was held back by earnings disappointments in the telecom and mining sectors.
Overall market sentiment also got a lift from American data showing a better-than-expected reading for consumer confidence and strength in the U.S. manufacturing sector.
The S&P/TSX composite index climbed 76.85 points to 12,499.76 while the TSX Venture Exchange added 6.81 points to 1,321.29.
“It looks like the housing market has bottomed, manufacturing seems to be picking up in different areas of the world, so there’s encouraging stuff there,” said Gareth Watson, vice-president of Investment Management and Research at Richardson GMP Ltd.
“But eventually that will take time to flow through to corporate earnings as well.”
The Canadian dollar shook off early losses to move up 0.22 of a cent at 100.32 cents US.
U.S. markets racked up solid gains as the Dow Jones industrials closed up 136.16 points to 13,232.62, the Nasdaq composite index gained 32.11 points to 3,020.06 and the S&P 500 index rose 15.43 points to 1,427.59.
The Conference Board says its consumer confidence index increased in October to 72.2, the highest level in almost five years.
Consumers were more confident after seeing better job growth, the report noted.
And a day before the U.S. non-farm payrolls report is released, payroll firm ADP said that the American private sector created 158,000 jobs in October. Economists had estimated the U.S. created about 120,000 jobs last month.
Meanwhile, the Institute for Supply Management says its index of factory activity rose last month to 51.7, up from September’s reading of 51.5. A reading above 50 indicates expansion.
December bullion slipped $3.60 to $1,715.50 US an ounce and the gold sector lost about two per cent.
The December crude contract on the New York Mercantile Exchange was up 85 cents at US$87.09 a barrel