Canadian stocks were extending gains for fifth session Tuesday morning, pushing the resource-heavy main index up near a two-month high, on speculation that central banks around the world will opt for monetary easing measures after the recent batch of downbeat economic data that rekindled global economic growth worries.
Meanwhile, today's data out of Europe revealed that euro zone producer prices fell 0.5 percent month-on-month in May, faster than the 0.3 percent drop predicted by economists.
The S&P/TSX Composite Index gained 235.41 points or 2.03 percent to 11,831.97, after adding nearly 300 points or just over 2 percent in the past four trading sessions.
Among base-metals stocks, Inmet Mining (IMN.TO), Teck Resources (TCK_B.TO) and First Quantum Minerals (FM.TO) gained around 5 percent each.
The price of crude oil was moving higher Tuesday morning amid speculation of stimulus measures from central banks. Crude for August gained $3.47 to $87.22 a barrel.
In the oil patch, MEG Energy (MEG.TO), Cenovus Energy (CVE.TO) and Imperial Oil (IMO.TO) moved up around 3 percent each.
Peyto Exploration & Development Corp (PEY.TO) edged up 1 percent after it said it would 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 30 percent
The price of gold was steady above $1,600 amid speculation that central banks will announce stimulus measures following the recent batch of weak economic data. Gold for moved up $21.30 to $1,619.00 an ounce.
In the gold space, Agnico-Eagle Mines (AEM.TO) and Allied Nevada Gold (ANV.TO) added around 4 percent each.
Catalyst Health Solutions Inc. (CHSI) announced that its 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 percent.
In economic news from south of the border, the 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.
Elsewhere, euro zone producer prices fell 0.5 percent month-on-month in May, the latest figures released by Eurostat showed. The decline was slightly faster 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 (OECD) 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.
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