Canadian stocks were moving higher Tuesday morning as commodities were trading firm on speculation that policy makers in China, the commodity hungry nation, will take steps to boost economic growth. Also, upbeat earnings report from lender Scotiabank helped lift trader sentiment.
China's State Council approved a broadening of a tax-reform trial. Further, China's finance ministry said it will subsidize the use of energy-saving products, a step in the government's efforts to increase consumer demand and stimulate the slowing economy.
The S&P/TSX Composite Index added 88.23 points or 0.76 percent to 11,654.38, a day after snapping its four session winning streak
The Diversified Materials Index surged over 3 percent, with Teck Resources (TCK_B.TO) gaining over 5 percent. First Quantum Minerals (FM.TO) and Inmet Mining (IMN.TO) moved up around 2 percent each.
The price of crude oil was ticking higher Tuesday morning amid a steady U.S. dollar as traders await cues from this week's economic data. Crude for July added $1.00 to 91.86 a barrel
In the oil patch, Calfrac Well Services (CFW.TO) gained almost 5 percent. Cenovus Energy (CVE.TO), Baytex Energy Corp. (BTE.TO) and Imperial Oil (IMO.TO) moved up around 2 percent each.
Among financial plays, Scotiabank (BNS.TO) rose close to 3 percent after reporting second-quarter net income that matched consensus estimates. The lender reported lower second-quarter net income of C$1.34 billion or C$1.15 per share versus C$1.53 billion or C$1.39 per share last year. Adjusted earnings per share fell to C$1.18 from C$1.41 in the prior-year quarter. Analysts were expecting the bank to report earnings of C$1.15 per share
TD Bank (TD.TO) and National Bank were up around 1 percent each,
Smart phone maker Research In Motion (RIM.TO) gathered close to 2 percent after announcing restructuring plans, which include trimming work force by 2000.
The price of gold was moving higher Tuesday morning even as the U.S. dollar was steady versus a basket of currencies with traders focusing on the developments in Greece. Gold for June edged up $4.70 to $1,573.60 an ounce.
Among gold plays, Kinross Gold Corp. (K.TO) added 2 percent after it said it would divest its 50 percent interest in the Crixas gold mine, Brazil, to AngloGold Ashanti for gross cash proceeds of $220 million.
Meanwhile, Ithaca Energy (IAE.TO) dived over 30 percent after announcing that it has ceased discussions with all parties regarding the potential acquisition of all of the outstanding shares of the company.
In economic news from south of the border, a report released by Standard & Poor's showed that the S&P/Case-Shiller 20-City Composite Home Price Index edged up by 0.1 percent on a seasonally adjusted basis in March compared to a 0.2 percent increase in February.
Separately, the Conference Board said its consumer confidence index fell to 64.9 in May from a downwardly revised 68.7 in April. The drop surprised economists, who had expected the index to edge up to 69.7 from the 69.2 originally reported for the previous month. With the unexpected decrease, the consumer confidence index fell to its lowest level since coming in at 61.5 in January.
From the euro zone, Germany's import price inflation slowed for the seventh consecutive month in April, data released by the Federal Statistical Office showed. The import price index increased 2.3 percent on an annual basis in April, slower than the 3.1 percent growth seen in March. The rate of growth slowed regularly since September 2011. Excluding crude oil and mineral oil products, the import price inflation was 1.4 percent during the month, data showed.
by RTT Staff Writer
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