CN: TSX advances report of strong Chinese export growth pushes commodities higher
By Malcolm Morrison, The Canadian Press
TORONTO - The Toronto stock market advanced Wednesday as commodity prices moved up smartly amid a report showing signs of strong economic performance in China.
The S&P/TSX composite index moved ahead 66.2 points to 11,583.4 while the TSX Venture Exchange added 3.13 points to 1,454.79.
The Canadian dollar moved up 0.68 of a cent to 96.05 cents US.
The July crude contract on the New York Mercantile Exchange rose $1.91 to US$73.90 a barrel following a report that Chinese exports grew 50 per cent in May from a year earlier, well above expectations of a 32 per cent rise. Also, new loans during May beat analyst estimates.
Official data from the Chinese government is to be released on Thursday.
Prices also rose following initial inventory data by the American Petroleum Institute on Tuesday which showed further substantial drops in crude stocks last week. The market will be watching to see if the more comprehensive Energy Information Administration data due to be released at midmorning confirms the API figures.
The TSX energy sector was ahead 1.1 per cent as Suncor Energy (TSX:SU) rose 43 cents to C$32.38 and Canadian Natural Resources (TSX:CNQ) climbed 49 cents to $36.71.
The base metals sector gained 2.52 per cent as copper prices also jumped following the Chinese report. The July copper contract on the Nymex was up eight cents to US$2.86 a pound. Teck Resources (TSX:TCK.B) advanced 71 cents to C$33.44 and Quadra FNX Mining (TSX:QUX) gained 50 cents to $12.
Commodity prices have been under heavy pressure amid worries that demand will be weakened by the European debt crisis, a slowing Chinese economy and renewed doubts about the U.S. economic recovery following disappointing jobs data for May.
The financials sector was supportive, up 0.76 per cent with Scotiabank (TSX:BNS) ahead 39 cents to $49.41.
The gold sector was the only negative group as bullion prices backed away from Tuesday's record high close. The August gold contract in New York fell $12 to US$1,233.60 an ounce and Barrick Gold Corp. (TSX:ABX) fell 53 cents to C$44.96.
The euro moved up to US$1.2023. The euro has touched a series of four-year lows in recent days on worries about Europe’s weak growth prospects and the economic effects of deep cuts in public spending announced by major European nations, including Germany and Britain.
