Canadian stocks shot higher Tuesday, following the long weekend, with the main equities benchmark rallying 2.2%
The S&P/TSX Composite Index vaulted 252.39 points to end Tuesday trading at 11,848.95
The Canadian dollar grew 0.44 cents to 98.76 cents U.S.
Canadian markets were closed Monday in observance of Canada Day.
In corporate news, SouthGobi Resources Ltd. said that Aluminum Corp. of China Ltd., or Chalco, and Ivanhoe Mines plan to extend Chalco’s partial takeover bid in which Chalco would acquire between 56% and 60% of SouthGobi’s common shares.
Following the announcement, shares of the coal miner jumped 65 cents, or 16.9%, to close at $4.50. Ivanhoe rallied 14 cents, or 1.4%, to $10.18.
Class B shares of Bombardier Inc. climbed 13 cents, or 3.2%, to $4.15 after announcing Saturday it had received an order for eight business aircraft, a sale that will amount to $507 million.
The plane and train manufacturer also pressured leaders at the Rio+20 environmental summit to shift toward interconnected rail transportation for greater sustainability throughout urban areas.
Other notable movers among shares of commodities-oriented companies included a 13.8% rally for Nevada Copper Corp., which gained 26 cents to $2.15, and a 6.8% gain for Major Drilling Group International, amounting to 80 cents to $12.57.
Gold miners that made headway included Centerra Gold Corp., its shares surging $1.03, or 14.5%, to $8.15, and NovaGold Resources Inc., adding 53 cents, or 9.9%, to $5.87.
Economically speaking, a report from the Royal Bank commented on manufacturing this morning. The RBC Canadian Manufacturing PMI for June managed to inch higher for the fifth consecutive month. However, the improvement was slight, rising to 54.8 from 54.7 in May.
Any reading above 50 indicates improving conditions in the manufacturing sector with the wider the gap above this break even level, the greater the extent of the improvement.
ON BAYSTREET
The TSX Venture Exchange jumped 34.5 points, or 2.9%, to 1,225.49. The Nasdaq Canada index added 3.09 points to 359.65
All 14 Toronto subgroups gained on the day, a number of them handsomely. Metals and mining issues assumed their customary leadership role, up 4.8%, materials were better by 4.3%, and energy stocks gushed 3.6%.
ON WALLSTREET
U.S. stocks rallied on a holiday-shortened trading day, as investors reacted to strong auto sales and an increase in U.S. factory orders for May.
But the big market-moving news will come Friday when the government releases June unemployment numbers.
The Dow Jones Industrials tacked on 72.43 points to close at 12,943.80
The S&P 500 hiked 8.51 points to 1,374.02. The Nasdaq Composite Index added 24.85 points to 2,976.08.
Many investment professionals are off for the week. U.S. markets closed at 1 p.m. ET on Tuesday, and will remain dark Wednesday to celebrate Independence Day.
Automakers are reporting June sales figures throughout Tuesday. Ford posted a 7% gain from last June, with 208,000 vehicles sold. Ford had warned last week that second-quarter losses from overseas operations -- particularly in Europe -- would be bigger than expected.
Chrysler sold 145,000 vehicles in June, a 20% gain from a year ago, while General Motors sold nearly 249,000 vehicles, a 16% increase. Toyota saw a 60% increase, selling 177,795 vehicles. Ford's stock rose 2%, and shares of GM jumped 6%. Honda figures were also due to be released Tuesday.
Barclays chief executive Bob Diamond will step down from his post, the bank said Tuesday. The news came a day after chairman Marcus Agius announced his own resignation amid the widening scandal surrounding the bank's manipulation of interbank lending rates. However, Agius was renamed chairman to lead the search for a new CEO on Tuesday. Barclays closed down more than 2%.
Seven additional banks are cited but not named in documents made public as part of Barclays' settlement with the Financial Services Authority, the British banking regulator.
Deutsche Bank, Royal Bank of Scotland, Credit Suisse, Citigroup, JPMorgan Chase and UBS are among the banks that have acknowledged they are being investigated.
Bank of America is also reportedly being investigated but has not made any public statements about the scandal, and a spokesperson declined to comment.
After Monday's close, Microsoft announced it would take a $6.2-billion U.S. writedown on its aQuantive acquisition. It purchased the online advertising company in 2007 for $6.3 billion U.S. in cash.
Economically speaking, the Institute for Supply Management said its June Purchasing Manufacturers Index fell to 49.7, down from 53.5 in May. It was the first time the index fell below 50, which signals expansion in the sector, since July 2009.
Factory orders for May rose by 0.7%, after increasing 0.4% in April. That beat expectations; economists at Briefing.com forecast the number to climb by 0.5%.
The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 1.62% from 1.58% late Monday. Treasury prices and yields move in opposite directions.
Oil for August delivery rose $3.84 to $87.57 U.S. a barrel.
Gold futures for August delivery gained $24.40 to $1,623.20 U.S. an ounce.
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