Canadian stocks ended higher Tuesday, led mostly by mining issues on expectations the European Central Bank would step-up efforts with further policy measures to tackle the eurozone debt crisis. The TSX made gains amid firm commodities and encouraging cues from the global equity markets.
Meanwhile, Spain witnessed a steep decline in borrowing costs at an auction on Tuesday, amid speculations the European Central Bank would resume its bond purchases.
The S&P/TSX Composite Index closed Tuesday at 12,116.92, up 40.89 points or 0.34 percent. The Index touched an intraday high of 12,196.77 and a low of 12,091.48.
The Metals & Mining Index gained 2.02 percent, with Teck Resources Limited (TCK.B.TO) up 2.01 percent, Lundin Mining Corp. (LUN.TO) up 2.40 percent, First Quantum Minerals Ltd. (FM.TO) gathered 1.24 percent, and Inmet Mining Corp. (IMN.TO) gained 5.24 percent. Osisko Mining Corp. (OSK.TO) moved up 0.64 percent.
The Global Gold Index moved up 1.78 percent, with gold futures for December delivery gaining $19.90 or 1.2 percent to close at $1,642.90 an ounce Tuesday on the NYMEX. The Capped Materials Index gained 1.32 percent.
Among other gold stocks, Barrick Gold (ABX.TO) was gained 1.31 percent, Yamana Gold Inc. (YRI.TO) up 3.47 percent, Eldorado Gold Corp. (ELD.TO) surged 5.70 percent, and Kinross Gold (K.TO) up 0.96 percent.
The Energy Index edged up 0.32 percent with U.S. crude oil futures for September delivery up $0.91 or 0.7 percent to close at $96.68 a barrel Tuesday on the NYMEX.
Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) edging up 0.05 percent, Suncor Energy Inc. (SU.TO) shed 0.03 percent, and Encana Corp. (ECA.TO) down 0.63 percent.
The Financial Index gained 0.35 percent with Royal Bank of Canada (RY.TO) up 0.99 percent, Bank of Nova Scotia (BNS.TO) up 0.28 percent, and Toronto-Dominion Bank (TD.TO) up 0.30 percent. Manulife Financial Corp. (MFC.TO) dropped 0.45 percent.
Among heavyweights, fertilizer maker Potash Corporation of Saskatchewan Inc. (POT.TO) dropped 2.24 percent, transportation systems maker Bombardier Inc. (BBD.A.TO, BBD.B.TO) edged down 0.27 percent. Smartphone maker Research In Motion (RIM.TO) surrendered 2.48 percent.
Solar photovoltaic products maker Trina Solar Limited (TSL) reported a swing to loss in the second quarter, with a net loss of $92.10 million compared to profit of $11.76 million last year. Loss per ADS was $1.30 compared to profit of $0.17 prior year. Analysts expected a loss of $0.79 per share for the quarter.
In economic news, Statistics Canada said wholesale sales edged down 0.1 percent to $49.9 billion in June, after four consecutive monthly increases. In volume terms, wholesale sales were down 0.5 percent. Sales in the machinery, equipment and supplies sub-sector rose by 1.3 percent in June, a third consecutive gain. Overall, three of the four industries in the sub-sector reported higher sales.
Elsewhere, the U.K. public sector net borrowing, excluding the temporary effects of financial interventions, increased in July, data from the Office for National Statistics showed. Net borrowing was GBP 0.6 billion in July, which was GBP 3.4 billion higher than in July last year when PSNB was GBP 2.8 billion.
by RTT Staff Writer
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