The Canadian stock market closed in positive territory on Monday on the back of positive Chinese data and a potential agreement in the "fiscal cliff" negotiations.
Latest news from Washington late Monday night said that a deal on fiscal cliff has been reached between the White House and the Republicans.
The S&P/TSX Composite Index added 117.41 points, or 0.95 percent, to 12,433.53, while the S&P/TSX Venture Composite Index gained 19.46 points, or 1.62 percent, to 1,221.30.
December manufacturing data from China showed the industry is at its strongest in 18 months.
However, all eyes were on the last-minute talks in Washington to avert the so-called "fiscal cliff." U.S. President Barack Obama announced Monday afternoon that an imminent deal is "within sight."
Gold stocks were among the most influential gainers of the day, with gold giant Barrick Gold surging 2.77 percent to 34.82 Canadian dollars per share. The firm's main competitor, Goldcorp, sharply rose 3.16 percent to 36.57 Canadian dollars a share.
Financial stocks advanced, with Royal Bank of Canada up 0.22 percent at 59.88 Canadian dollars a share. The country's second largest bank, TD Bank increased by 0.49 percent to 83.75 Canadian dollars per share.
In metals and mining sectors, Teck Resources gained 3.08 percent to 36.15 Canadian dollars per share. Other miners, First Quantum Minerals and Lundin Mining, increased by 3.35 percent to 21.91 Canadian dollars a share and 1.59 percent to 5.12 Canadian dollars per share respectively.
In energy sector, Suncor Energy was up 1.52 percent to 32.71 Canadian dollars apiece. Imperial Oil rose 0.83 percent to 42.73 Canadian dollars per share.
Telecom stocks declined with telecom services giant Telus Corp dropping 0.52 percent to 65.10 Canadian dollars a share.
In corporate news, the Canadian Imperial Bank of Commerce (CIBC) has agreed to pay 149.5 million U.S. dollars to the estate company of Lehman Brothers Holdings Inc to resolve litigation over a collateralized debt obligation tied to the bankruptcy of the former Wall Street bank. CIBC shares were down 0.72 percent to 79.97 Canadian dollars apiece.
Transportation manufacturing firm Bombardier Inc. announced Monday it will supply Germany's Abellio Rail with 35 of its Talent 2 trains, with the vehicles entering service in December 2015.
The company said the trains in the 226-million-U.S.-dollar deal have the ability to accelerate quickly to a constant speed. Bombardier shares were up 0.8 percent to 3.76 Canadian dollars apiece.
In currency, the Canadian dollar strengthened to 1.0075 U.S. dollar at closing at 5 p.m. local time