Newspaper article The Canadian Press

TSX Rises on Stronger Commodity Prices, U.S. Weekly Jobless Numbers Improve

Newspaper article The Canadian Press

TSX Rises on Stronger Commodity Prices, U.S. Weekly Jobless Numbers Improve

Article excerpt

TSX rises as commodities prices strengthen

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TORONTO - The Toronto stock market ignored a big downturn on Wall Street on Thursday and focused on stronger commodity prices to climb higher.

The S&P/TSX composite index was up 65.22 points to close at 12,704.52.

The Canadian dollar rose 0.23 of a cent to 97.05 cents US.

Driving the market higher were gold stocks as December bullion rose $27.50 to end at US$1,360.90 an ounce. September copper fell 2.5 cents to US$3.34 a pound.

Iamgold Corp. (TSX:IMG) rose 11 per cent to C$6.66.

The September crude contract rose 48 cents to settle at US$107.33 a barrel as supply concerns returned following renewed unrest in Egypt.

Egypt is not an oil producer but its control of the Suez canal, one of the world's busiest shipping lanes that links the Mediterranean with the Red Sea, gives it a crucial role in maintaining global energy supplies.

The TSX went higher despite fears from U.S. traders that the Federal Reserve will begin its tapering plan next month in response to a strengthening economy.

Improved sentiment has pushed U.S. Treasury yields higher as traders anticipate the Fed will reduce its $85-billion-a-month monetary stimulus in September, a move that is expected to lead to a rise in the cost of borrowing.

"People are viewing that rates are going to go higher," said Ian Nakamoto, director of research at MacDougall, MacDougall and MacTier.

"I don't see anything on the horizon that changes people's viewpoint."

On Wall Street, the Dow fell 225.47 points to 15,112.19, the Nasdaq dropped 63.16 points to 3,606.12 and the S&P 500 slid 24.07 points to 1,661.32.

The sharp decline came as some good news emerged about the U.S. economy. Weekly applications for unemployment benefits dropped to a six-year low of 320,000.

But not all the news was positive on the U. …

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