North American markets were higher at midday, with Toronto stocks getting a boost from another major deal in the Canadian financial sector and the S&P 500 advancing just enough to return the index back to levels it was trading at before Lehman Brothers collapsed in September, 2008.
Main indexes built upon gains from earlier in the session. The S&P/TSX composite index was up 111 points, or 0.9 per cent, at 13,305 and the S&P 500 was up 5 points, or 0.4 per cent, to 1,252, above its level on Sept. 12, 2008, the last session before Lehman filed a record bankruptcy that intensified the financial crisis. The Dow Jones industrial average was up 43 points, or 0.4 per cent, at 11,521 while Nasdaq was up 13 points, or 0.5 per cent, at 2,663.
The financial sector raced ahead 1 per cent after Toronto-Dominion Bank said it is buying Chrysler Financial from U.S. private equity firm Cerberus Capital for $6.3-billion (U.S.). Its shares were up nearly 3 per cent at noon ET, aided by the fact the bank also said it will not issue additional stock to pay for the purchase.
Elsewhere in the sector, Bank of Montreal rose by $1.05 (Canadian) to $57.65, still roughly $4 less than levels it was trading at before announcing Friday it was buying U.S. lender Marshall & Ilsley Corp. for $4.1-billion in stock.
Canada's resource-heavy equity exchange was also getting a boost from new record highs Tuesday in the copper pits of New York and London.
The base metals sector in Toronto advanced 1.1 per cent as the March copper contract in New York added 6 cents (U.S.) to $4.27 a pound. Teck Resources rose 79 cents (Canadian) to $58.30 while Quadra FNX Mining climbed 19 cents to $16.14. Copper is getting a boost from supply concerns related to port problems in Chile as well as strong import data in China.
Investor sentiment also improved amid signs of easing tensions on the Korean peninsula. Investors have been watching North Korea's apparent decision to avoid confrontation with South Korea despite accusing it of being "reckless" with its military drills.
The energy sector rose 0.7 per cent as the February crude contact on the New York Mercantile Exchange was ahead 13 cents (U.S.) at $89.50 a barrel. Suncor Energy gained 24 cents to $36.88 while Cenovus Energy ran ahead 64 cents to $32.57.
With files from The Canadian Press