Canadian stocks ended higher on Tuesday, as global equity markets recovered after some early weakness, on reports that Greece has proposed an interim financing until end July, with optimism a deal could still be reached.
Greek Prime Minister Alexis Tsipras is reported to have proposed the same reform list submitted before the announcement of the referendum and which the Eurogroup refused to take up for discussion.
Reports also say Athens is likely to present a new reform list on Wednesday. After the first Eurogroup meeting on Tuesday, Dijsselbloem said Greece will make a formal request for financial assistance through the European Stability Mechanism on Wednesday which will be discussed by eurozone finance ministers.
Nonetheless, Dijsselbloem stressed that any new reform list must be credible to allow lenders provide more aid to Greece.
With its cash running out, Greece is likely to exit the eurozone monetary union upon defaulting on its sovereign debt. Greek voters rejected harsh austerity measures that were once agreed to as part of their rescue plan a few years back.
Greece on Sunday rejected the bailout plan demanded by its international creditors in a referendum, boosting chances of the beleaguered country exiting the Eurozone. The Greek stock market and banks will remain closed until Thursday.
Majority of the Canadian sectors ended in the green, led mainly by energy stocks, with mining and gold stocks among the weakest performers as precious metal prices dropped.
Most markets in Europe ended in the red on Tuesday, as concerns over Greece continued to weigh on investor sentiment.
Markets in the United States rallied to end in positive territory, after coming under pressure in early trade. Uncertainty about the ongoing Greek debt crisis weighed on markets.
Meanwhile, the U.S. trade deficit widened in May, but not as much as economists had anticipated.
The benchmark S&P/TSX Composite Index closed Tuesday at 14,624.50, up 30.93 points or 0.21 percent. The index scaled an intraday high of 14,625.11 and a low of 14,389.10.
On Monday, the index closed down 88.82 points or 0.60 percent, at 14,593.57. The index scaled an intraday high of 14,670.26 and a low of 14,524.64.
Crude oil futures pared much of the losses but still ended lower on a strong dollar and with investors keeping a close watch on the Iran nuclear program agreement as talks were reportedly extended until Friday.
The Energy Index gained 2.13 percent, with U.S. crude oil futures for August delivery dropping $0.20 or 0.4 percent, to settle at $52.33 a barrel on the New York Mercantile Exchange Tuesday.
Among energy stocks, Suncor Energy Inc. (SU.TO) gained 2.25 percent, while Canadian Natural Resources Limited (CNQ.TO) added 0.63 percent. Crescent Point Energy Corp. (CPG.TO) gained 1.01 percent, while Encana Corp. (ECA.TO) gathered 0.83 percent.
Cenovus Energy Inc. (CVE.TO) moved up 2.46 percent, Canadian Oil Sands (COS.TO) gathered 3.06 percent, Pacific Rubiales Energy (PRE.TO) moved up 2.08 percent and Enbridge (ENB.TO) advanced 1.89 percent.
Gold futures ended sharply lower as the dollar strengthened, even as the crucial Eurogroup summit on Greece was underway.
The Gold Index plunged 3.57 percent, with gold for August delivery shedding $20.60 or 1.8 percent, to settle at $1,152.60 an ounce on the New York Mercantile Exchange Tuesday.
Among gold stocks, Goldcorp Inc. (G.TO) fell 0.14 percent, Barrick Gold Corp. (ABX.TO) fell 4.59 percent, and Kinross Gold Corp. (K.TO) dropped 2.41 percent. IAMGOLD Corp. (IMG.TO) slipped 2.42 percent.
The Capped Materials Index plunged 2.88 percent, as Agrium Inc. (AGU.TO) added 1.45 percent and Agnico Eagle Mines Limited (AEM.TO) fell 3.96 percent. Potash Corp. of Saskatchewan (POT.TO) fell 1.84 percent.
The Diversified Metals & Mining Index dropped 2.04 percent, as First Quantum Minerals Ltd. (FM.TO) shed 5.18 percent and Teck Resources Limited (TCK.B.TO) gathered 3.29 percent. HudBay Minerals (HBM.TO) shed 4.22 percent, while Sherritt International (S.TO) surrendered 2.84 percent.
The heavyweight Financial Index inched up 0.02 percent, as Royal Bank of Canada (RY.TO) edged down 0.0.04 percent, National Bank of Canada (NA.TO) inched up 0.02 percent, and Bank of Montreal (BMO.TO) added 0.45 percent.
Toronto-Dominion Bank (TD.TO) fell 0.60 percent, Bank of Nova Scotia (BNS.TO) gained 0.50 percent, and Canadian Imperial Bank of Commerce (CM.TO) gathered 0.68 percent.
The Capped Health Care Index added 0.77 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) moved up 1.03 percent, Concordia Healthcare Corp. (CXR.TO) gained 0.70 percent, while Catamaran (CCT.TO) added 0.81 percent.
The Capped Industrials Index climbed 0.80 percent, as Bombardier Inc. (BBD-A.TO) gained 0.44 percent and Finning International Inc. (FTT.TO) moved up 3.77 percent.
WestJet Airlines Ltd. (WJA.TO) moved up 0.99 percent, while Air Canada (AC.TO) dropped 1.35 percent.
The Information Technology Index added 0.04 percent, as BlackBerry Inc. (BB.TO) gained 0.50 percent, Sierra Wireless, Inc. (SW.TO) dipped 0.03 percent, and Descartes Systems Group Inc. (DSG.TO) moved up 0.65 percent.
The Capped Telecommunication Index moved up 0.31 percent, as TELUS Corp. (T.TO) gained 0.50 percent, BCE Inc. (BCE.TO) slipped 0.61 percent, Manitoba Telecom Services (MBT.TO) moved up 0.47 percent, and Rogers Communication (RCI-B.TO) gathered 0.79 percent.
Silver Wheaton (SLW.TO) plunged 11.71 percent. The company has received a proposal letter from the Canada Revenue Agency proposing to reassess Silver Wheaton under various rules contained in the Income Tax Act (Canada).
Fortis (FTS.TO) jumped 4.01 percent, after agreeing to sell the hotel assets of Fortis Properties Corp to a private investor group for $365 million.
Temple Hotels (TPH.TO) dropped 3.62 percent, after agreeing to sell Hotel Saskatchewan in downtown Regina, SK for $38 million.
Jean Coutu Group (PJC-A.TO) dived 5.07 percent, after reporting a first-quarter net profit of C$0.27 per share, down from C$0.29 per share in the prior-year quarter.
On the economic front, Statistics Canada reported Tuesday morning that the Canadian trade deficit widened to C$3.34 billion in May. Economists had expected a deficit of C$2.50 billion. April's trade deficit was also revised to C$2.99 billion.
In economic news, a Commerce Department report on Tuesday showed U.S. trade deficit to have widened in May, with the value of exports falling much more than the value of imports. U.S. trade deficit widened to $41.9 billion in May from a revised $40.7 billion in April. Economists expected the deficit to widen to $42.7 billion.
From Europe, Germany's industrial production remained unchanged in May from the prior month, Destatis reported Tuesday. Production was forecast to rise 0.1 percent after expanding 0.6 percent in April, which was revised down from 0.9 percent.
The French trade deficit increased in May due to a fall in exports amid increasing imports, the customs office reported Tuesday. The trade deficit widened to EUR 4.02 billion in May from EUR 3.3 billion in April. It was larger the expected shortfall of EUR 3.6 billion.
U.K industrial output expanded unexpectedly in May on strong oil and gas production, figures from the Office for National Statistics showed Tuesday. Industrial production rose 0.4 percent month-over-month in May, defying economists' expectations for a 0.2 percent fall. It was the fourth consecutive monthly gain.
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