The Canadian Press

The Toronto stock market closed sharply higher Tuesday with investors growing convinced that European leaders will move by the end of the week to fix the debt crisis that has been simmering in Greece.

The S&P/TSX composite index surged 158.94 points to 11,274.24. The Canadian dollar was up 0.57 of a cent to US93.64¢.

Stock markets have lost ground recently over fears about unsustainable debt loads taken on by some European countries, Spain, Portugal and Greece chief among them. There are worries that the sovereign debt issue has the potential to derail the global economic recovery.

Although the European Investment Bank said Tuesday it would not be able under its rules to offer Greece or any other country a bailout, investors are betting that a meeting on Thursday of EU leaders will address the sovereign debt issue.

“It all tells me the market is starting to price in the likelihood of either a bailout plan or a very strong understanding that, should Greece need financial assistance, the EU members will step in,” said Matthew Strauss, senior currency strategist at RBC Capital Markets.

“The EU summit faces the wrath of the market on Thursday if they do not approve some kind of assistance or understanding.”

But some analysts had doubts about a bailout.

“It’s difficult to believe that the Germans, who effectively are the people who fund the euro, are going to be willing to put their hands in their pockets, because the Greeks have been extremely undisciplined in their fiscal behaviour and any attempts to actually get it results in riots and strikes,” said Gavin Graham, contributing editor for The Income Investor.

Meanwhile, the base metals sector led TSX gainers, up 5.23% as March copper added 7¢ to US$2.99 a pound and investors also took in positive major earnings reports from the commodity sector.

Teck Resources Ltd. (TSX:TCK.B) said Monday it earned C$411 million in its latest quarter as revenue increased 35% compared with a year ago, helped by sharply higher copper and zinc revenue but offset by lower coal prices. The profit compared with a loss of $607 million a year ago. Teck shares gained $1.77 to C$36.27.

Fertilizer producer Agrium Inc. (TSX:AGU) reported fourth-quarter profit came in at US$30 million, down sharply from $124 million a year earlier when it and other fertilizer producers were still benefiting from the rewards of strong demand and high prices. Agrium’s net sales fell to $1.44 billion, down from US$1.94 billion a year earlier, but its shares gained $2.75 to C$64.77. Shares in rival Potash Corp. (TSX:POT) advanced $3.76 to C$113.10.

Inmet Mining Corp. (TSX:IMN) shares moved ahead $4.15 to $57 as the company reported an $89.8-million profit in the fourth quarter, a turnaround from the $32.5-million loss from a year earlier. Sales revenue more than doubled to $290.6 million.

Western Coal Corp. (TSX:WTN) shares ran ahead 32¢ to $3.47 after it said its quarterly profit fell to $24 million. That was down from a profit of $62.5 million in the year-earlier period. Revenue fell to $118.7 million from $176.6 million in the final three months of 2008.

The TSX energy sector advanced 0.93% as the March crude contract on the New York Mercantile Exchange climbed $1.86 to US$73.75 a barrel. Canadian Natural Resources (TSX:CNQ) rose 72¢ to $69.75.

Suncor Energy (TSX:SU) announced that a fire broke out in the early hours of Tuesday morning at one of its two oilsands upgraders north of Fort McMurray, Ala. Suncor says officials are currently assessing damage and will provide an update on scheduling of repairs when the assessment is complete. It shares climbed 57¢ to $31.85.

And shares in Pacific Rubiales Energy Corp. (TSX:PRE) climbed 37¢ to $14.45 after the company announced a new discovery at its Quifa-6 oil well in the Llanos Basin off Colombia and a successful appraisal at the nearby Quifa-18 well.

The April gold bullion contract on the Nymex climbed $11 to US$1,077.20 an ounce, pushing the gold index up 3.8%. Goldcorp Inc. (TSX:G) advanced $1.46 to C$38.34 while Barrick Gold Corp. (TSX:ABX) improved $1.31 to $38.35.

The financial group was up 1.06%. TD Bank (TSX:TD) was ahead 66¢ to $63.58 and Royal Bank gained 75¢ to $53.81.

The TSX Venture Exchange was ahead 13.93 points to 1,474.53.

The Dow Jones industrials jumped 150.25 points to 10,058.64.

The Nasdaq composite index gained 24.82 points to 2,150.87 while the S&P 500 gained 13.78 points to 1,070.52.

@page_break@In other earnings news, Molson Coors (NYSE:TAP) says its fourth-quarter profit more than doubled to US$218.2 million because of favourable tax benefits. Volume of worldwide beer sales fell 4% but higher prices helped drive an 11% rise in revenue to US$820.8 million. Its shares in New York moved $1.39 lower to US$39.92.

Oilsands company Opti Canada Inc. (TSX:OPC) had a loss of $212 million in its fourth quarter of 2009. That’s a reduction from the year-earlier loss of $410 million. The Calgary-based oilsands company’s revenue also fell, to $43 million in the final quarter of 2009 from $69 million a year earlier. Opti Canada shares slipped 8¢ to $1.83.

Toyota said it was recalling about 437,000 Prius and other hybrid vehicles worldwide to fix brake problems. With the Prius announcement, the number of vehicles recalled globally by the automaker has ballooned to 8.5 million, including those that need work to deal with accelerator problems. Its shares moved up US$1.81 to $74.66 in New York.