Canadian stocks extended gains for a fifth day to settle sharply higher Tuesday, pushing the resource-heavy main index up near a two-month high. Investors weighed speculations of additional stimulus measures from the European Central Bank to help boost growth, with other central banks expected to follow suit. The anticipation follow a slew of weak economic data globally.
Meanwhile, data out of Europe showed eurozone producer prices fell 0.5 percent month-on-month in May, faster than the 0.3 percent drop predicted by economists.
Toronto's main index, the S&P/TSX, closed Tuesday at 11,848.95, up 252.39 points or 2.18 percent. The S&P/TSX Composite Index touched an intraday high of 11,885.33 and a low of 11,596.56.
Markets in Canada were closed on Monday in lieu of Canada Day which fell on July 1, 2012.
The TSX Venture Index closed at 1,225.49, up 34.50 points or 2.90 percent. The index opened at 1,207.30 compared to its previous close of 1,190.99.
Almost all components of the S&P/TSX Index were firmly in positive territory, led mostly by resource stocks.
The Metals & Mining Index jumped 4.15 percent with Lundin Mining Corp. (LUN.TO) gaining 6.64 percent and Teck Resources Limited (TCK.B.TO) up 3.93 percent. Inmet Mining (IMN.TO) moved up 2.68 percent, while First Quantum Minerals (FM.TO) gained 6.17 percent.
U.S. crude oil futures for August delivery, jumped $3.91 or 4.7 percent to close at $87.66 a barrel Tuesday on the NYMEX.
The Energy Index moved up 3.28 percent with Suncor Energy Inc. (SU.TO) up 4.86 percent and Canadian Natural Resources Limited (CNQ.TO) gathering 4.39 percent. Encana Corp. (ECA.TO), however, dropped 2.55 percent.
Peyto Exploration & Development Corp (PEY.TO) edged up 1.51 percent after agreeing to acquire Open Range Energy Corp (ONR.TO) on the basis of 0.0696 of its share for each Open Range common share. Shares of Open Range skyrocketed 32.35 percent
Gold futures for August delivery gained $24.10 or 1.5 percent to close at $1,621.80 an ounce Tuesday on the NYMEX. The Global Gold Index gained 3.4 percent.
Among gold stocks, Kinross Gold Corp. (K.TO) gained 8.18 percent, while Barrick Gold Corp. (ABX.TO) moved up 2.74 percent. Goldcorp Inc. (G.TO) gained 4.10 percent.
The Materials Index gained 4.1 percent with heavyweight Potash Corporation of Saskatchewan Inc. (POT.TO) up 2.85 percent.
The Financial Index moved up 1.26 percent with Royal Bank of Canada (RY.TO) gaining 1.99 percent, Bank of Nova Scotia (BNS.TO) up 1.12 percent, and Toronto-Dominion Bank (TD.TO) inching up 0.08 percent. Manulife Financial Corp. (MFC.TO) gained 2.71 percent.
Heavyweight transportation systems maker Bombardier Inc. (BBD.B.TO) moved up 1.74 percent. Research In Motion Limited (RIM.TO) shed 1.86 percent.
Catalyst Health Solutions Inc. (CHSI) stockholders approved the plan of merger with SXC Health Solutions Corp. (SXC.TO), in a cash and stock transaction valued at about $4.75 billion. Catalyst stockholders will receive $28.00 in cash without interest and 0.6606 of a share of SXC stock for each share held. Shares of SXC slipped 1.35 percent.
In economic news, a Royal Bank of Canada report showed Canadian Manufacturing PMI for June to have moved up for the fifth consecutive month, rising to 54.8 from 54.7 in May. A reading above 50 indicates improving conditions in the manufacturing sector.
From south of the border, U.S factory orders posted a stronger than expected rebound in May buoyed by orders of ships, boats and aircraft, according to the Commerce Department. New orders for manufactured goods up $3.3 billion, a 0.7 percent increase that partially reverses two consecutive months of declines. Economists estimated 0.1 percent increase in orders for factory goods following a 0.6 percent drop in the previous month.
Elsewhere, eurozone producer prices fell 0.5 percent month-on-month in May, the latest figures released by Eurostat showed. The decline was slightly more than the 0.3 percent drop predicted by economists. In April, the producer price index rose 0.1 percent. On an annual basis, the price index gained 2.3 percent compared to expectations for a 2.5 percent rise.
Meanwhile, consumer price inflation in the Organization for Economic Cooperation and Development area slowed for the third consecutive month in May, latest data showed. The consumer price index increased 2.1 percent on an annual basis in May, after growing 2.5 percent in the previous month. In March and February, inflation rates were 2.7 percent and 2.8 percent respectively.
by RTT Staff Writer
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