Source: The Canadian Press

The Toronto stock market regained much of the ground it lost earlier this week as investors grew slightly more confident Wednesday about the global economy.

The S&P/TSX composite index gained 108.24 points to 12,901.99 and the TSX Venture Exchange rose 22.06 points to 2,023.

The mining sector led the stock market higher, rising 2.2% after sinking far into the red on Tuesday. The December copper contract on the Nymex was up 5.5 cents to US$3.75 a pound and shares in miner Teck Resources Ltd. (TSX:TCK.B) gained $1.05 to C$49.87.

Uranium mining stock got a big boost Wednesday from two large deals in Eurasia.

The January crude contract was up $2.61 a barrel to $83.86 on the New York Mercantile Exchange after a series of upbeat U.S. economic reports bolstered oil traders’ hopes for an improving economy.

The energy sector rose 1.3% with shares of Suncor Energy Inc. (TSX:SU) gaining 44 cents to C$34.39.

The financial sector also rose 1% ahead of fourth-quarter earnings expected next week from Canada’s big five banks. Shares of Canadian Imperial Bank of Commerce (TSX:CM) rose $1.12 to $78.37.

The December gold contract fell $4.60 to US$1,373 an ounce. Gold miners were the biggest losers on the TSX with shares of Barrick Gold Corp. down 39 cents to C$51.56.

The commodities rebound came even as China’s government widened an anti-inflation campaign, ordering a crackdown Wednesday on speculators it accuses of illegally pushing up commodity prices. Beijing is enforcing measures announced last week intended to cool food prices that soared more than 10% in October.

The Canadian dollar climbed 1.16 cents to 98.90 cents US.

Investors, encouraged by largely upbeat U.S. data, moved out of safe havens like gold and the U.S. dollar to make riskier investments as details emerged on a bailout for Ireland, while political tensions in the Korean peninsula receded.

“There is so much news going on in the world, Korean military activity, European small nation problems, a stronger U.S. dollar and Chinese apparent attempts to slow down their economic growth, that the gold and silver markets are extremely confused and trading rather erratically,” said Bob Tebbutt, vice-president of Peregrine Financial Group Canada.

U.S. markets also moved higher after a batch of economic reports offered some signs that the American economy is improving.

There were fewer filings for unemployment aid last week, a sign that the labour market is picking up. Americans’ spending and incomes rose in October. But sales of new homes tumbled last month and orders to U.S. factories for big, expensive products slid.

The Dow Jones industrial average closed 150.91 points higher at 1,1187.28 and the Nasdaq was up 48.17 points to 2,543.12. The S&P 500 was up 17.62 points to 1,198.35.

Trading is likely to remain volatile over the day as traders in the U.S. shut up shop ahead of the U.S. Thanksgiving break.

On the Toronto Stock Exchange, shares XM Canada’s parent company Canadian Satellite Radio Holdings Inc. (TSX:XSR) jumped 15% to $3.75 after the company announced a plan to merge with its rival — privately-owned Sirius Canada Inc. in an all stock deal valued at about $520 million.

Sierra Wireless Inc. (TSX:SW) shares fell three cents to $11.50 after it said an employee has been accused of revealing inside information as part of a wide-ranging insider trading investigation in the United States. No details were released.

Cameco (TSX:CCO) announced it has signed an agreement with China Guangdong Nuclear Power Holding Co. Ltd. to supply 13 million kilograms of uranium concentrate under a long-term agreement through 2025. Shares in the company gained $1.58 to $37.58.

Uranium One Inc. (TSX:UUU) says it has received final regulatory approval from the U.S. Nuclear Regulatory Commission for the sale of a controlling interest in the company to Russia’s state-owned ARMZ. Shares were up 32 cents at $$4.97.

Shares of Maple Leaf Foods (TSX:MFI) fell 10% or $1.28 to $11.41 after resuming trading. Its shares had been halted on Tuesday afternoon before the Ontario Teachers Pension Plan Board announced it would sell its entire stake in the packaged meat company for 17% below market value.

Mideast cellphone retailer Axiom Telecom announced it has reached a distribution deal with BlackBerry maker Research In Motion (TSX:RIM) aimed at boosting sales of the handsets throughout the region. RIM shares were up $1.06 or 2% to $60.21.

Natural gas and oil producer Pacific Rubiales Energy Corp. (TSX:PRE) said it would begin a quarterly dividend with distribution of US$25 million or 9.4 cents per common share. Its stock closed trading up $1.20 to $31.72.

In international news, political tensions in the Korean peninsula receded, while the euro briefly fell below $1.33 for the first time in two months amid worries that Europe’s debt crisis was spiralling out of control and heading for Portugal and Spain.

Ireland unveiled the harshest budget measures in its history Wednesday, a four-year plan to claw back 15 billion euros (US$20 billion) using spending cuts and extra taxes. Some 24,000 state employees could lose their jobs and the sales tax could soar to 23%.

The plan seeks to cut 10 billion euros ($13.3 billion) from spending and raise 5 billion euros ($6.7 billion) in extra taxes from 2011 to 2014 to combat Europe’s worst deficit.