TSX up more than 100 points on three days of five-day winning streak
The Toronto Stock Exchange was up for a fifth-straight day on Tuesday as commodity prices rose in reverse correlation to the U.S. dollar.
The S&P/TSX composite index was up 116.56 points, or 1.02 per cent, to 11,586.37, mostly from gains in commodity stocks. Tuesday's rally marked the third time within this five-day winning streak in which the daily gain has been more than 100 points.
The TSX Venture composite was up 21.39 points, or 1.43 per cent, to 1,520.14 for its seventh-straight day of progress while the dollar was up 50 basis points to 95.83 cents US.
It was an impressive day for U.S. stock markets as well. The Dow Jones industrial average was up 169.67 points, or 1.68 per cent, to 10,268.81.
The Nasdaq composite index was ahead by 30.66 points, or 1.4 per cent, to 2,214.19.
There was no trading Monday due to holidays in both countries.
Among the individual stocks driving up the main TSX index, Teck Resources Ltd. was up 3.09 per cent, Canadian Natural Resources Ltd. gained 1.79 per cent and First Quantum Minerals Ltd. rose 1.84 per cent.
Tuesday's gains came as crude oil on the New York Mercantile Exchange gained $2.88 to $77.01 US a barrel, while gold was up $29.80 to $1,119.30 US an ounce.
This came as the U.S. dollar fell against the euro, which rose after European Union leaders urged Greece to reduce its deficit, which was four times the EU's limit last year.
Calls from the Obama administration for further sanctions against Iran over its nuclear program were also cited as a factor for higher oil prices.
"Equity and commodity markets in North America have started out the week with a big rebound, climbing on the back on gains in European markets," Colin Cieszynski, market analyst with CMC Markets Canada, said in a note Tuesday.
"The rally appears to be driven by receding fears surrounding the European debt problems.
"Although officials have given some indication that help may be available for Greece and other countries if needed . . . no specific bailout measures appear planned," Ceiszynski said.
"Instead, it appears that Greece will be forced to make regular reports to the European Union on its progress toward reducing its budget problems."
Among economic news on Tuesday, Canada's Finance Minister Jim Flaherty announced tighter conditions for mortgages, including a limit on amortization periods to 35 years from 40 years.
Also, Statistics Canada said manufacturing sales were up 1.6 per cent in December to $43 billion, the highest level in a year but still missing analysts' expectations for a gain of 1.8 per cent.
There were strong stock-market gains in Europe on Tuesday.
Japan's Nikkei index also rose a modest 0.21 per cent, while a number of other Asian markets were closed for holidays.
