Canadian stocks rose the most in a week after economic data showed U.S. industrial production climbed by the most in a year, a sign manufacturing is bolstering the world’s biggest economy.
BlackBerry Ltd. climbed 2 percent after analysts at Sanford C. Bernstein raised their rating on the stock to market perform from underperform. Primero Mining Corp., the operator of the San Dimas gold mine in Mexico, fell 6.7 percent after agreeing to buy Brigus Gold Corp. Brigus soared 33 percent. Alaris Royalty Corp. slumped 8.6 percent after analysts at Raymond James Financial Inc. cut the stock’s recommendation to market perform from outperform.
The Standard & Poor’s/TSX Composite Index advanced 58.71 points, or 0.5 percent, to 13,184.41 at 4 p.m. in Toronto, the biggest advance since Dec. 6. The benchmark equity gauge slid 1.2 percent last week, the most since June.
“Euro-manufacturing data was strong out of Germany and the industrial production number was really good overall, sending positive signals to manufacturing and commodities and pushing Canadian stocks higher,” Gareth Watson, vice president of investment management and research at Richardson GMP Ltd., which oversees C$28 billion ($26.5 billion), said by phone from Toronto. “When the global economy does well, the Canadian economy follows suit.”
Output at U.S. factories, mines and utilities rose 1.1 percent after a revised 0.1 percent gain in October that was previously reported as a decline, a report from the Federal Reserve showed in Washington. The median forecast in a Bloomberg survey called for a 0.6 percent increase. The index of industrial production rose to 101.3, exceeding for the first time its pre-recession peak in December 2007.
A Markit Economics report showed that euro-area manufacturing reached a 31-month high in December, led by Germany. Euro-area output rose to 52.7, from 51.6 in November, above the estimate of 51.9 in a Bloomberg News survey of 35 economists. The gauge has been higher than 50, indicating expansion, for six months.
The Federal Open Market Committee, or FOMC, begins a two-day meeting tomorrow. The number of economists who forecast policy markers may start curbing $85 billion of monthly bond purchases this month doubled from last month’s Bloomberg survey.
The S&P/TSX Gold Index rose 1.1 percent for a third day of gains. Torex Gold Resources Inc. rallied 6.8 percent to C$1.10 for the biggest advance in the gauge, while China Gold International Resources Corp. jumped 6.8 percent to C$2.84. Gold futures advanced 0.8 percent in New York.
BlackBerry climbed 2 percent to C$6.55 after Bernstein analyst Pierre Ferragu upgraded the stock, citing limited room for further declines because of the company’s valuation.
Primero declined 6.7 percent to C$4.87. Investors will get 0.175 of a Primero share for each Brigus share they hold, the company said. As part of the deal, Primero will spin out a company with Brigus’s interests in mining projects in Saskatchewan and Mexico. The new company will be 90 percent-owned by Brigus shareholders with Primero investors holding the rest. Brigus rose 33 percent to 84 Canadian cents.
Alaris dropped 8.6 percent to C$30.40, the lowest since June. Raymond James analyst Theoni Pilarinos downgraded the private-equity fund.