Source: The Canadian Press

The Toronto stock market was higher Tuesday as a weak U.S. dollar helped lift commodity prices while investors also took in a decision by the Bank of Canada to leave its key interest rate unchanged at 1%.

The S&P/TSX composite index jumped 119.09 points to 13,559.2 — its highest close since late August, 2008 — while the TSX Venture Exchange was ahead 17.06 points at 2,292.51.

The Canadian dollar was down 0.58 of a cent at 100.72 cents US as the central bank also raised its 2011 growth forecast to 2.4% from 2.3%.

“The recovery is proceeding at a somewhat faster pace than anticipated,” observed Fred Ketchen, manager of equity trading at Scotia Capital. “I would have to say that’s probably not bad news.”

Economists expect the central bank to resume hiking its rates this year. But the communique from the bank signalled that it won’t be moving until around the middle of 2011 at the earliest.

Meanwhile, the base metals sector gained 2.18% as copper prices headed higher with the March contract on the New York Mercantile Exchange up two cents at US$4.43 a pound. Teck Resources (TSX:TCK.B) climbed $1.86 to C$63.84 while Quadra FNX Mining Ltd. (TSX:QUX) was up 33 cents at $17.34.

Gold stocks also advanced as the February bullion contract on the Nymex was $7.70 higher at US$1,368.20 an ounce. Barrick Gold Corp. (TSX:ABX) rose 93 cents to C$47.81 while Goldcorp Inc. (TSX:G) gained 13 cents to $40.57.

Energy stocks were also higher even as crude prides declined despite a higher OPEC demand forecast.

The February crude contract slipped 16 cents to US$91.38 a barrel, but the energy sector moved ahead 1.2%, with Suncor Energy (TSX:SU) up 60 cents at C$38.79 while Canadian Natural Resources (TSX:CNQ) advanced 74 cents to $42.40.

Encana Corp. (TSX:ECA) said its U.S. subsidiary has agreed to sell its Fort Lupton natural gas processing plant in Colorado for about US$303 million. The Calgary-based natural gas giant said Western Gas Partners LP (NYSE:WES) would acquire the plant, which has production of about 84 million cubic feet per day. Encana Corp. (TSX:ECA) gained 95 cents to C$31.88.

New York markets were higher ahead of earnings reports after the close from IBM and, particularly, Apple Inc.

Apple CEO Steve Jobs announced Monday that he was going on medical leave to focus on his health.

“Now, I think Apple is more than Steve Jobs,” said Ketchen. “But at the same time, he is a huge influence and he is the guiding light and he does have the brains and obviously I would be concerned too under the present circumstances. You have this degree of uncertainty and markets do not like uncertainty.”

Apple, whose stock closed down $7.83 at US$340.65 in New York, later reported fiscal fourth-quarter earnings of US$6.43 a share, much higher than the US$5.40 a share that analysts expected. Revenue came in at US$26.74 billion. In early after-hours trading, the stock regained 71 cents to US$341.36.

The Dow Jones industrial average was up 50.55 points at 11,837.93.

The Nasdaq composite index was 10.55 points higher at 2,765.85 while the S&P 500 index rose 1.78 points to 1,295.02.

After the close, IBM reported earnings per share of US$4.18 against the US$4.08 that analysts forecast. Revenue came in at US$29 billion, higher than the US$28.26 billion analysts expected. Its shares had closed up 65 cents at US$150.65, then jumped $4.15 to $154.80 in early after-hours trading.

Stock markets also rose amid hopes that eurozone countries are planning to strengthen and broaden their measures to fight the debt crisis.

Ministers from the 17 countries that use the euro met in Brussels and discussed boosting the size and powers of the region’s bailout fund. Support for stronger action is growing and the bloc is clearly trying to come up with a more comprehensive solution to its crisis. It will take months for a final decision.

The crisis has already forced Greece and Ireland to implement painful budget cuts in exchange for multibillion-dollar bailouts.

In other corporate news, TD Ameritrade Holding Corp. (Nasdaq:AMTD) says it had net income of US$145 million or 25 cents per share in its first quarter of fiscal 2011. That’s up from US$136.2 million or 23 cents per share a year earlier. TD Bank Financial Group (TSX:TD) owns 40% of Ameritrade and it said the results will contribute $48 million to first-quarter net income. TD shares were ahead 42 cents at C$76.52.

Brookfield Asset Management Inc. (TSX:BAM.A) shares ran up 97 cents to $33.28 after it announced it had signed a deal to increase its stake in U.S. mall operator General Growth Properties Inc. in an agreement valued at $1.7 billion in shares and cash. The deal with Fairholme Fund increases Brookfield stake in General Growth from 27% to 38%.