Canadian stocks were hovering in the green Tuesday morning as traders continued to focus on the euro zone debt situation and Spanish and Italian bond yields. Investors were also cautious ahead of the Sunday elections in Greece to ascertain if the debt-ridden nation would continue in the euro zone.
The S&P/TSX Composite Index gained 44.29 points or 0.39 percent to 11,446.07, after shedding nearly 250 points or 2 percent in the past three sessions.
The price of crude oil ticking higher as traders were concerned over demand growth. The Organization of the Petroleum Exporting Countries, in its monthly oil market report released today, maintained its world oil demand growth forecast for 2012 but cautioned that economic developments world-wide had placed a great amount of uncertainty on oil demand. Crude for July moved up $0.80 to $83.50 a barrel.
In the oil patch, Trilogy Energy (TET.TO) shed close to 4 percent, while Crescent Point Energy (CPG.TO) was losing just over 1 percent.
Meanwhile, gold stocks were firm amid a rebound in bullion prices. The price of gold was moving higher, erasing early trading losses, amid a generally weak dollar and on lack of cues from both sides of the Atlantic. Gold for August rose $13.10 to $1,609.90 an ounce.
Among gold plays, Royal Gold (RGL.TO), Agnico-Eagle Mines (AEM.TO) and Goldcorp. (G.TO) were up around 2 percent each. Seabridge Gold (SEA.TO) gained over 3 percent.
Transportation equipment maker Bombardier (BBD_B.TO) gained 6 percent after NetJets Inc., a Berkshire Hathaway co. announced it will add up to 425 new aircraft to its worldwide fleet under purchase agreements with Cessna and Bombardier.
Fertilizer maker Agrium Inc. (AGU.TO) added nearly 1 percent after it said it expects first-half earnings to be near or at the top end of guidance range of $5.50 to $6.10 per share. Analysts currently estimate earnings of $4.57 per share for the second quarter.
Grain handler Viterra Inc. (VT.TO), which is being bought by Swiss commodities trader Glencore International Plc in a C$6.1 billion deal, said its second quarter net earnings more than doubled to C$67.11 million from C$30.16 million in the prior year. On a per share basis, earnings climbed to or C$0.18 per share from or C$0.08 per share. Analysts were expecting the company to report earnings of C$0.11 per share for the quarter. The stock edged up 0.25 percent.
In economic news from south of the border, the Labor Department said U.S. import prices fell sharply in May, while prices of U.S. exported goods fell for the first time in 2012. The overall price index for U.S. imports fell by 1 percent in May, marking the largest single month drop since June 2010. Most economists, however, had expected a somewhat higher, 1.1 percent decline in the costs of imported goods.
From the euro zone, U.K. manufacturing output dipped 0.7 percent month-on-month in April, reversing March's 0.9 percent rise, the Office for National Statistics said. The decline far exceeded economists' forecast of 0.1 percent fall. At the same time, industrial production remained flat on month versus a 0.3 percent fall in the prior month. Economists were forecasting a 0.1 percent rise for April.
by RTT Staff Writer
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