Canada Stocks Gain as Energy, Banks Rise on U.S. Budget Optimism
Canadian stocks rose as energy and financial shares advanced on optimism U.S. policymakers are moving closer to a budget compromise.
Athabasca Oil Corp. added 3.5 percent after it outlined its 2013 budget and analysts with UBS Securities raised the stock’s rating. Rubicon Minerals Corp. dropped 6.1 percent after saying the Wabauskang First Nation planned to file a lawsuit related to its gold project in Ontario. Suncor Energy Inc. and Canadian Natural Resources Ltd. increased at least 0.4 percent as crude oil gained for a third day.
The Standard & Poor’s/TSX Composite Index (SPTSX) rose 20.22 points, or 0.2 percent, to 12,301.57 at 10:07 a.m. in Toronto. The equity gauge has gained 2.9 percent this year.
U.S. President Barack Obama lowered his tax revenue demand by $200 billion and offered to start tax rate increases at $400,000 in income instead of $250,000. House Speaker John Boehner will push a budget “plan B” measure that would include tax increases on income of more than $1 million, while continuing to negotiate with Obama, a Republican aide said.
Government leaders are negotiating to avoid more than $600 billion in automatic spending cuts and tax increases set to begin in the new year.
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