TORONTO - The Toronto stock market surged to its highest close of the year as worries about Dubai's credit problems receded and American economic reports reinforced the impression a rebound is underway.
The S&P/TSX composite index jumped 260.12 points to 11,707.32.
Investors felt more confident the Dubai debt crisis will be contained, almost a week after the emirate shocked markets when it said its investment arm, Dubai World, wanted to postpone payments on its approximately US$60 billion of debt for at least six months.
The Canadian dollar climbed 0.81 of a cent to 95.54 cents US, while U.S. dollar weakness together with data showing Chinese manufacturing activity expanded in November for a ninth straight month, sent oil up $1.09 to US$78.37 a barrel. Gold advanced $18 to a record high close of US$1,199.10 an ounce.
New York's Dow Jones industrials rose 126.74 points to 10,471.58, the Nasdaq composite index climbed 31.21 points to 2,175.81 while the S&P 500 index gained 13.23 points to 1,108.86.
The Institute for Supply Management's November index on manufacturing activity showed that the sector is still expanding. And a report on construction spending also signalled growth with the first increase in six months.
