Source: The Canadian Press

The Toronto stock market pushed into positive territory just before the close Monday — a turnaround led by a rebound in the energy sector on higher oil prices.

The S&P/TSX composite index gained 2.94 points to 12,895.65. The TSX Venture Exchange was down 6.2 points at 2,050.8.

The Canadian dollar added 0.13 of a cent to 98.17 cents US as the price of oil and other commodities gained ground.

The January crude contract rose $1.97 to US$85.73 a barrel on the New York Mercantile Exchange after briefly turning negative. The energy sector moved into positive territory on the higher price of crude. Shares of Suncor Energy Inc. (TSX:SU) gained 53 cents to US$34.69.

Oil prices increased even as the U.S. dollar was stronger against other currencies. Since oil and other commodities are priced in dollars, a stronger greenback makes them more expensive for buyers who use foreign currencies.

Gold stocks were a drag on the TSX even as the December gold contract was up $3.60 at US$1,366 an ounce. Shares in Barrick Gold Corp. fell 66 cents to C$51.19.

The December copper contract on the Nymex was unchanged at US$3.75 a pound.

Investors attention was focused on both sides of the Atlantic — strong Thanksgiving retail sales in the United States and approval given Sunday by the European Union for the equivalent of US$90 billion in rescue loans to Ireland.

There are concerns that other European countries, including Portugal and Spain, could soon be forced to ask for bailouts as well.

“At the same time that we’ve seen relatively good economic numbers come (from) North America, there’s constant tension between worries about Europe,” said Kate Warne, Canadian market strategist at Edward Jones in St. Louis.

Warne suggested that investors may further align their focus with North American markets as the week progresses, with both Canadian and U.S. employment reports due Friday.

The TSX was bolstered by the energy, financial, utilities and telecommunications sectors, which swung into the black at late afternoon.

The financial sector recovered after losing some ground early in the morning on the day before National Bank of Canada (TSX:NA) kicks off fourth-quarter earnings season for the big six Canadian banks.

Shares in National Bank gained 15 cents to $68.73 after being bolstered last week by expectations it may be the first big bank to raise its dividend since the recession.

In corporate developments, Husky Energy Inc. (TSX:HSE) says it will pay $860 million to acquire oil and natural gas properties in Western Canada from ExxonMobil Canada Ltd. The properties will add the equivalent of about 33,000 barrels of oil per day to Husky’s production. Its shares were down 95 cents at $24.57.

Shares in Niocan Inc. (TSX:NIO) fell 10 cents to 32 cents after a coalition of Mohawks, farmers and local political leaders said they are circulating a petition opposing the miner’s niobium project in Oka, a suburb north of Montreal.

Cheese making giant Saputo (TSX:SAP) said it is continuing to investigate the cause of a Listeria bacteria contamination that prompted the Montreal-based company to voluntarily recall several lots of cheese from an unidentified Quebec plant. Its shares fell 51 cents to $37.30.

Shares of Rubicon Minerals Corp. (TSX:RMX) soared to a multi-year high, increasing 33%, after the company reported that its Phoenix gold project could contain up to four million ounces of gold. Its stock was up $1.53 at $6.13.

Statistics Canada reports that Canada’s overall current account deficit widened by $4.6 billion to reach a high of $17.5 billion in the third quarter. It’s the eighth quarterly deficit since the fourth quarter of 2008.

Bank of Montreal economist Douglas Porter says the broader deficit is an early warning sign that the country may be living beyond its means and could undermine the strength of the Canadian dollar.

“The deficit on overall trade has been readily funded to this point, but raises questions on the medium-term sustainability of recent Canadian dollar strength,” he wrote in a note.

“The combination of a loonie near par and a soft U.S. economy are hardly the recipe for a resurgent trade performance.”

Stock markets south of the border closed mired in red but pared back losses from earlier in the session.

U.S. investors threw off some of the worries over Europe late in the trading session and decided to focus on some positive economic news. Earlier in the day, the Federal Reserve Banks of Dallas and Chicago both reported higher manufacturing activity.

The Dow Jones industrial average was down 39.51 points at 11,052.49 and the Nasdaq composite index fell 9.34 points to 2,525.22 while the S&P 500 index lost 1.64 points to 1,187.76.

The National Retail Federation trade group estimated that 212 million shoppers visited stores and websites during the first weekend of the holiday season, up from 195 million last year. A fuller picture on spending will come Thursday when retailers report their November revenue.

Investors have been hoping that consumers, who have generally been spending cautiously since the recession, would feel more comfortable about shopping during the holidays. Many economists believe that Americans will have to spend more freely for the U.S. economy to put together a stronger recovery.