TSX still in black

Strong economic data from Asia pushed commodities and the Toronto stock market higher Wednesday. As the clock approached noon, the S&P/TSX composite index had gained 52.97 points to 11.479.71, well off its highs for the day. Exports from China fell 13.8% in October, the smallest decrease in 10 months and imports dropped by 6.4% over the same period, a slightly faster pace than in September. China's retail sales were up 16.2% in October from the same month last year, while industrial output rose a better-than-expected 16.1%. The energy sector was ahead as American currency weakness also helped send the December crude contract up. Canadian Natural Resources rose $1.07 to $71.89 while Suncor Inc. climbed 41 cents to $37.27. Crude traders were watching the dollar closely, as a weaker U.S. currency makes oil cheaper for investors buying the commodity with nondollar currencies. The rise in crude came amid a warning from OPEC that demand for oil will slip in the industrialized nations next year if prices climb and are sustained above their current level. Gold prices moved further into record territory. As a result, the gold sector rose as Goldcorp Inc. advanced 53 cents to $46.84 and Barrick Gold Corp. improved 51 cents to $45.76. The base metals sector ran up as December copper moved up five cents to $3.01 U.S. a pound. Teck Resources climbed 49 cents to $34.71 and HudBay Minerals moved up 30 cents to $16.96. The TSX also received major support from the financial sector, with Royal Bank ahead $1.01 to $57.84. In other earnings news, Flight training firm CAE Inc. reports net income of $39.1 million or 15 cents per share for the second quarter of fiscal 2010, down from a year-ago net profit of $49 million or 19 cents per share. Quarterly revenues came in at 364.5 million, down from $406.7 million last year and its shares were unchanged at $9. Wenzel Downhole Tools Ltd. shares dipped three cents to $1.04 after reporting a net loss of $843,000 or three cents per share in the latest quarter, down from a year-ago net profit of $3.8 million or 12 cents per share. Quarterly revenues were $9 million, down from $17.2 million last year. Canadian investors also took in acquisition activity in the waste management business. Toronto's IESI-BFC Ltd. and Burlington, Ont.-based Waste Services, Inc. have agreed to merge and form what the companies say will be North America's third-largest solid waste management company. The acquisition by IESI-BFC values Waste Services at $8.14 per share, based on Tuesday closing stock prices, or about $388.1 million. The Canadian dollar spiked 0.33 cents to 95.60 cents U.S. ON BAYSTREET All but two of the 14 TSX subgroups were higher by noon, on the momentum provided by materials, up 1%, financials and global base metals, ahead 0.8% each. The two losing groups were real-estate, down 0.4%, and consumer staples, off 0.01%. The TSX Venture Exchange gained back 5.56 points to 1,350.69, while the Nasdaq Canada index was 5.41 points in the black to 687.76. ON WALLSTREET In New York, equities traded higher Wednesday as investor optimism rose on the expectation that interest rates would remain low for some time. The Dow Jones Industrials remained ahead 24.41 points to 10,271.38. The S&P 500 index was 3.14 points in the black to 1,096.15, while the Nasdaq composite index was 8.83 points to the good, at 2,159.91. Federal Reserve officials speaking Tuesday said the economic recovery was likely to be weak, and they also reinforced the view that the central bank would keep interest rates low for the foreseeable future. Wall Street finished Tuesday's session mixed as investors expressed caution following Monday's huge stock rally. But the Dow's 20-point gain did leave it at a new 13-month high. AIG's Robert Benmosche threatened to step down as CEO of the bailed-out insurer, telling the company board that he's "done" because of government restraints, according to the Wall Street Journal, which cited unidentified people familiar with the matter. Treasurys were not trading today, on both sides of the border, for the Veterans Day/Remembrance Day holiday The price of a barrel of oil gained 14 cents to $79.22 U.S. Gold prices hurtled ahead yet again, by $13, to $1,115 U.S. an ounce.