Snapping their two-session losing streak, Canadian stocks moved up Tuesday morning as commodities and global equities recovered amid hopes that central bankers globally will take actions for the continuation of stimulus measures to spur growth. Monday, Federal Reserve Vice Chairman Janet Yellen said the central bank should continue to buy bonds until the unemployment stays stubbornly high.
The S&P/TSX Composite Index rose 104.58 points or 0.82 percent to 12,811.99, after losing over 100 points or nearly 1 percent in the past two straight sessions.
The Diversified Materials Index was the major gainer, adding nearly 2 percent. Teck Resources (TCK_B.TO) and First Quantum Minerals (FM.TO) gained about 3 percent each, while Inmet Mining (IMN.TO) was adding over 1 percent.
The price of crude oil was ticking higher Tuesday morning as traders await more cues from the U.S. automatic budget cuts came into effect last week. Today after the market hours, the API will release its US crude oil inventories report for the weekended March 01. Crude for April edged up $0.33 to $90.45 a barrel.
In the oil patch, Cenovus Energy (CVE.TO) and Baytex Energy Corp. (BTE.TO) gathered about 2 percent each.
Among financial stocks, Scotiabank (BNS.TO) moved up over 1 percent after reporting that its first quarter net income increased to C$1.504 billion from C$1.343 billion in the year ago quarter. Earnings per share were C$1.25, compared to C$1.20 in the same period a year ago. Adjusted earnings per share for the quarter was C$1.27 up from C$1.22 in the comparable quarter last year and higher than consensus estimates of C$1.25 per share.
CIBC (CM.TO) and TD Bank (TD.TO) edged up around 0.50 percent each.
The price of gold as moving higher Tuesday morning amid speculation of a rate cut out of Europe this week and on mixed US dollar. Gold for April gained $3.50 to $1,575.90 an ounce.
In the gold space, Seabridge Gold (SEA.TO) jumped over 7 percent.
Gold miner Aurizon Mines Ltd. (ARZ.TO) reiterated its recommendation that shareholders 'reject' the previously announced offer by Alamos Gold Inc. (AGI.TO). Aurizon also reiterated its recommendation that Aurizon shareholders support the arrangement whereby Hecla Mining Co. (HL) will acquire all of the outstanding common shares of Aurizon. Shares of Aurizon slipped 0.50 percent.
Mobile equipment company Wajax Corp. (WJX.TO) lost 4 percent after announcing that its net earnings for the fourth quarter dropped to C$14.2 million or C$0.84 per share from C$16.6 million or C$0.98 per share recorded in 2011.
In economic news from south of the border, activity in the U.S. service sector unexpectedly grew at a slightly faster rate in the month of February, according to a report released by the Institute for Supply Management, with the index of activity in the sector reaching its highest level in a year. The ISM said its non-manufacturing index crept up to 56.0 in February from 55.2 in January, with a reading above 50 indicating growth in the service sector. The increase by the index came as a surprise to economists, who had expected it to dip to 55.0.
From Europe, an indicator of eurozone's service sector activity declined in February, but the rate of fall was less steeper than estimated earlier, detailed results of a survey by Markit Economics showed. The services activity index rose to 47.9 in February from 48.6 in January. The flash reading was 47.3. An index reading below 50 indicates contraction of the sector.
Retail sales in the eurozone increased more than economists expected in January, recovering from the previous month's decrease, latest data showed. Retail sales volume increased 1.2 percent on a monthly basis in January, reversing the previous month's 0.8 percent decrease, which was revised from 0.9 percent, statistical office Eurostat said. Economists had forecast sales to rise 0.3 percent.
Elsewhere, Germany's private sector expanded more than estimated in February, survey data from Markit Economics showed. The final composite output index - which measures the combined output of the manufacturing and service sectors, came in at 53.3 in February, above the flash estimate of 52.7.
by RTT Staff Writer
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