Toronto stocks ended essentially flat Tuesday, as a rising energy group and a blockbuster mining deal offset a poor day in the broader market.

The S&P/TSX composite index finished up 8.35 points, or 0.08%, to close 10,620.50.

Volume on the senior exchange was 253 million shares.

Seven of the 10 TSX main sub-groups were down, though the energy group advanced 1.64%.

A barrel of light crude settled at US$63.60, up $1.75, on the New York Mercantile Exchange.

EnCana Corp. gained 77¢, or 1.3%, to $60.11.

The materials sector gained 1.03%, after Inco Ltd. and Falconbridge Ltd. announced a shares-cash deal valued at more than $12 billion. The proposed merger would create the world’s largest nickel producer.

Falconbridge gained $3.77, or 12.23%, to $34.59, while Inco lost 29¢, or 0.56%, to $51.61.

Gold for December delivery closed up $1.80 at US$479.80 an ounce, yet the gold sector was off 0.62%.

Barrick Gold Corp. lost 14¢, or 0.49%, to $8.34.

In economic news, the Canada Mortgage and Housing Corp. reported the seasonally adjusted annual rate of housing starts is up to just over 230,000.

The Canadian dollar ended the day down 0.07 of a cent at US85.01¢.

The junior S&P/TSX Venture composite index finished up 2.30 points, or 0.11%, to 2,120.27.

In New York, inflation fears and high energy costs offset the effect of strong corporate news from Alcoa. As well, the U.S. Federal Reserve signalled further interest rate hikes in the minutes from its last policy decision.

The Dow Jones industrial average closed up 14.41 points at 10,253.17, the S&P 500 ended down 2.46 points at 1,184.87, and the Nasdaq composite was the biggest loser, ending down 17.83 points at 2,061.09, a three-month low.

Alcoa beat forecasts with earnings of US$283 million on revenue of $6.6 billion.