Source: The Canadian Press

Resource shares pushed the Toronto stock market higher Wednesday even as worries about a Chinese economic slowdown and a stronger American dollar pushed commodity prices lower.

The S&P/TSX composite index gained 55.6 points to 12,657.83 after four losing sessions, while the TSX Venture Exchange moved up 31.12 points to 1,953.99.

The Canadian dollar lost early gains against the U.S. dollar and moved down 0.2 of a cent to 97.63 cents US after losing more than a cent Tuesday as traders continued to watch developments in Europe’s government debt crisis.

The base metals sector gained just over 1% as copper prices closed up almost half a cent at US$3.73 a pound. The metal’s price had plunged almost 9% in the past week amid a stronger American dollar and concerns about what steps China could take to slow its economy after inflation hit a 25-month high in October.

“There is some nervousness in regards to what China is going to do,” said Serge Pepin, director of investments, BMO Investments.

China and other emerging markets “are what is going to get us out of this funk. Whatever they do will have repercussions on sentiment here,” Pepin said.

Western Canadian Coal (TSX:WTN) jumped 39 cents to $7.38 while Quadra FNX Mining Ltd. (TSX:QUX) rose 49 cents to $14.

Teck Resources Ltd. (TSX:TCK.B) shares moved up 53 cents to $48.69 as it said it will boost its dividend to 30 cents per share, an increase of 50%.

The gold sector also moved higher even as gold prices weakened with the December contract on the Nymex down $1.50 at US$1,336.90 an ounce. Barrick Gold Corp. (TSX:ABX) gained 44 cents to C$50.43 while Eldorado Gold (TSX:ELD) rose 20 cents to $17.13.

Brazilian resource company EBX says it plans an all-cash offer to buy out other shareholders of Ventana Gold Corp. (TSX:VEN) in a transaction that values the Canadian mining company at $1.5 billion. Ventana shares surged $3.87, or 38.58%, to $13.90.

Oil prices moved below US$81 a barrel amid a report showing U.S. crude supplies unexpectedly plunged last week.

The energy sector was up 0.19% as benchmark oil for December delivery was down $1.90 to $80.44 even as the U.S. Energy Department reported a sharp oil inventory drop of 7.3 million barrels last week. Canadian Natural Resources (TSX:CNQ) rose 10 cents to C$38.80.

The TSX financial sector moved up 0.35% after earlier losing ground on fears that Ireland will become the latest European country to need a bailout. Ireland has been struggling since a collapse in its housing market forced the country to take over three large banks.

But a roadblock to a resolution is that “Ireland doesn’t want to accept it, they still want to remain sort of independent as much as possible, they don’t want to owe anything to anybody,” Pepin said.

“But at some point something has to snap.”

CIBC (TSX:CM) rose $1.24 to $76.65 while Scotiabank (TSX:BNS) was up 37 cents at $53.

New York markets were mainly weak amid data showing little signs of inflation and a sharp drop in new home construction.

The Dow Jones industrial average edged 15.62 points lower to 11,007.88.

The Nasdaq composite index gained 6.17 points to 2,476.01 and the S&P 500 index inched up 0.25 of a point to 1,178.59.

The U.S. Commerce Department says construction of new homes sank 11.7% last month to a seasonally adjusted annual rate of 519,000 units, the poorest showing since April 2009.

Meanwhile, U.S. consumer prices rose moderately in October but there was little sign of inflation as the cost of autos, clothing and hotels fell. The U.S. Labour Department said the Consumer Price Index rose by 0.2% last month, an increase from September’s 0.1% rise.

Investors also took in earnings news from two of Canada’s biggest grocery chains.

Metro Inc. (TSX:MRU.A) says both its profits and sales were stronger in its fiscal fourth quarter even as price deflation cut into results. Earnings increased 10.7% to $93.4 million while sales rose 1.1% to $2.56 billion. Its shares declined 23 cents to $46.

Loblaw Co. (TSX:L) shares climbed 11 cents to $42.26 as it reported that third-quarter profit rose nearly 13% to $213 million, or 76 cents per share, up from $189 million or 69 cents a year earlier. Sales increased 1.3% to $9.6 billion.

Elsewhere, Potash Corporation of Saskatchewan Inc. has announced plans for a US$2-billion share buy-back. Its shares were up 93 cents at $139.15.

General Motors is expanding its initial public offering of common shares by 31%, increasing the planned offering of common stock to 478 million shares. The move could make GM’s IPO, which takes place Thursday, the largest in history for a U.S.-based company. The price is target is expected to be between US$32 and US$33 per share.

IE