Markets inches up

The Toronto stock market enjoyed a slightly positive start to the session Thursday as successful bond auctions in Italy and Spain raised the appetite for risk and sent commodity prices higher.

The S&P/TSX Composite inched up 10.65 points to startt the day at 12,271.59

The Canadian dollar gained 0.19 cents to 98.32 cents U.S.

In corporate news, Connacher Oil and Gas Ltd. said chief executive officer Richard Gusella is leaving the company barely a week after a big shakeup in its executive offices. Gusella had taken on the additional responsibilities last week of president and interim chief operating officer, filling the roles after two executives departed.

Bauer Performance Sports Ltd. credits a big improvement in revenue, led by hockey equipment sales, for turning last year's $1.9-million U.S. second-quarter loss into an $8.2-million U.S. profit this time around. Revenue soared 27% to $100.3 million U.S.

An unspecified number of “interested parties” are doing due diligence on a possible takeover or merger transaction with Jaguar Mining Inc, but the company says there is no assurance it will result in a change of control.

On the economic front, Statistics Canada reported this morning that the New Housing Price Index rose 0.3% in November, following a 0.2% jump in October.

ON BAYSTREET

The TSX Venture Exchange picked up 8.75 points to 1,539.87, while the Nasdaq Canada index slid 0.76 points to 391.42

The 14 Toronto subgroups were evenly split between gainers and losers. Gold led the gainers with a surge of 1.4%, while metals and mining picked up 1%, and global base metals increased 0.7%.

The seven laggards were weighed by consumer discretionary stocks, down 0.3%, while information technology and consumer staples dipped 0.2% each.

ON WALLSTREET

In New York, stocks lost ground quickly Thursday morning after the release of weak economic reports from the U.S. government.

The Dow Jones Industrials were down 38.59 points to begin the day at 12,410.90

The S&P 500 gave back 1.86 points to 1,290.62, while the Nasdaq Composite slid 9.13 points to 2,701.63

Two weeks into 2012, the S&P 500 is 2.1%. The Dow is up 1.7% and Nasdaq is up 4%.

Shares of Sears Holdings fell 10%, after a Bloomberg report that CIT Group is halting loans to the retailers' suppliers.

Energy stocks moved down, with Exxon Mobil falling slightly and Chevron down 2%.

The mix of positive news from Europe and lackluster performance of the U.S. economy is an inversion of what's been driving markets for the past several months. Investors have mostly been digesting better-than-expected reports on the health of the U.S. economy while seeing reasons to fear Europe's sovereign debt crisis.

Investors shrugged off positive signs from Europe. Italy and Spain's first debt auctions of the year drew solid demand, calming fears about Europe's crisis at least in the near term.

During Spain and Italy's debt auctions early Thursday, both nations successfully raised more funds than expected and at lower borrowing rates than they paid a mere month ago.

Investors had been demanding higher interest rates, stoking concerns about the governments' solvency. Both Italy and Spain need to refinance billions of euros of debt this year.

Treasury prices for the 10-year note fell, pushing yields up to 1.92% from Wednesday's 1.90%. Treasury prices and yields move in opposite directions.

Oil for February delivery jumped $1.84 to $102.71 U.S. a barrel.

Gold futures for February delivery gained $21.20 to $1,660.80 U.S. an ounce.