Bloomberg News

Canadian Stocks Soar as Commodities Jump After U.S. Budget Deal

January 02, 2013

Canadian stocks rose, sending the benchmark index toward the highest closing level in nine months, as commodities surged after U.S. lawmakers passed a bill averting spending cuts and tax increases.

Canadian Natural Resources Ltd. (CNQ) and Suncor Energy Inc. added at least 1.5 percent as crude climbed to its highest in three months. Barrick Gold Corp., the world’s largest producer of the metal, gained 1 percent as gold rallied to a two-week high. Royal Bank of Canada, the nation’s largest lender, climbed 1.1 percent.

The Standard & Poor’s/TSX Composite Index (SPTSX) rose 134.65 points, or 1.1 percent, to 12,568.18 at 9:54 a.m. in Toronto. A close at that level would be the highest since March.

The U.S. House passed a bill undoing income tax increases for more than 99 percent of households. The 257-167 bipartisan vote breaks a yearlong impasse over how to head off $600 billion in tax increases and spending cuts that would have started taking effect yesterday.

To contact the reporter on this story: Eric Lam in Toronto at elam87@bloomberg.net

To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net


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