Canadian stock market surges on US budget optimism

The Canadian stock market was pushed sharply higher as traders were encouraged by signs that a budget agreement may be reached by the U.S. government soon. All of eight sectors on the main index for the Toronto Stock exchange moved higher after House speaker John Boehner said Republicans are offering legislation that will allow for a temporary increase in the debt ceiling. The Toronto Stock Exchange's benchmark S&P/TSX Composite Index climbed 164.08 points, or 1.29 percent, to finish the day's trading at 12894.41. Boehner said the proposal involves delaying the min-October deadline for the government to raise debt ceiling by six weeks until late November if President Barack Obama agrees to negotiate over ending the partial government shutdown and a longer-term increase in the debt ceiling. The speaker's remarks relieved investors that the U.S. government won't head toward an Oct. 17 deadline when the government starts to run out of money to pay creditors. The energy sector led advancers, up almost 2 percent as the November crude oil contract on the New York Mercantile Exchange moved up 1.25 percent to 102.88 U.S. dollars a barrel. Canadian Natural Resources climbed 4.5 percent to 33.46 Canadian dollars ( 32.12 U.S. dollars) per share after the oil giant provided a preview of its third-quarter results. The metals and mining sector was up 1.63 percent. First Quantum Minerals climbed 2.7 percent to 18.60 Canadian dollars (17.85 U.S. dollars) a share, while Teck Resources rose 1.17 percent to 26.73 Canadian dollars (25.66 U.S. dollars) per share. The information technology sector moved up 1.33 percent. BlackBerry shares closed up five Canadian cents to 8.49 Canadian dollars (8.15 U.S. dollars) apiece on news that two of the smartphone company's co-founders are looking at making a potential takeover bid. At closing, the Canadian dollar closed down at 0.9618 U.S. dollars at 5 p.m. local time (2100 GMT), compared with 0.9622 U.S. dollars on Wednesday.