Canada Stocks Rise as U.S. Lawmakers Work to Reach Budget Deal
Canadian stocks rose, with the benchmark index heading toward a gain for the year, as U.S. lawmakers worked to reach a last-minute budget deal.
Barrick Gold Corp. (ABX) and Goldcorp Inc., the world’s two largest producers of the metal, rose at least 0.8 percent as the price of gold was set to post a 12th straight annual gain. The Standard & Poor’s/TSX Composite Index (SPTSX) rose 23.07 points, or 0.2 percent, to 12,339.19 at 10:33 a.m. in Toronto. The equity gauge has gained 3.2 percent this year, trailing markets in every developed nation in the world except Portugal and Spain.
U.S. Senate Majority Leader Harry Reid said he’s hopeful negotiators can reach a last-minute budget deal that would protect all but top earners from a tax increase. Lawmakers are seeking to avoid more than $600 billion in spending cuts and tax increases that will kick in at midnight. Failure to avert the so-called fiscal cliff will probably send the U.S. into a recession in the first half of the year, according to the Congressional Budget Office.
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