Markets in Toronto forged higher Tuesday morning, on speculation the U.S. Federal Reserve will announce another bond buying program this week, counter-balancing some caution ahead of a German ruling on the euro-zone's new bailout fund.
The S&P/TSX Composite index regained 36.33 points to open Tuesday at 12,251.76
The Canadian dollar gained 0.60 cents at 102.88 cents U.S.
Among the stocks to watch this morning, oil and natural gas up-and-comer NuVista Energy Ltd. said it will sell three properties in Alberta and Saskatchewan in Canada for about $236 million to repay debt.
On the economic ledger, Statistics Canada reported this morning that Canada's merchandise exports fell 3.4% and imports decreased 2.2% in July. As a result, the agency says, Canada's trade deficit with the world expanded from $1.9 billion in June to $2.3 billion in July.
Moreover, Canada Mortgage and Housing Corporation released figures this morning saying that housing starts surged unexpectedly to 224,900 units in August, compared with 208,000 units in July. The July figure was revised down slightly from a previously-reported 208,500 units.
ON BAYSTREET
The TSX Venture Exchange advanced 4.55 points to 1,275.76
All but one of the 14 Toronto subgroups were higher at the outset. Global base metals picked up 0.8%, while energy and the metals and mining group each tacked on 0.7%.
The lone laggard was in real-estate, shedding 0.5%.
ON WALLSTREET
U.S. stocks opened modestly higher Tuesday, as investors remained unwilling to place any big bets ahead of decisions out of Europe and from the Federal Reserve.
The Dow Jones Industrial average began the day ahead 73.54 points to 13,327.80
The S&P 500 index regained 5.44 points, to 1,434.52, and the tech-heavy Nasdaq Composite Index added 4.76 points to 3,108.78.
In company news, Hewlett-Packard Co. expects to lay off 29,000 workers over the next two years, or 2,000 more than it had originally said.
British fashion brand Burberry lowered its sales guidance for the rest of the year Thursday morning, sending yet another sign that the global luxury market continues to lag. Shares of Tiffany & Co. and Coach Inc were lower almost 2% on the news.
Shares of bailed out insurer AIG continued their slide Tuesday. The Treasury Department said Sunday it is selling $18 billion U.S. worth of AIG shares, representing more than half of its remaining $29-billion U.S. stake in the bailed-out insurer.
Global markets were mixed ahead of Wednesday's ruling from Germany's Constitutional Court on the legality of the European Stability Mechanism, a permanent bailout fund that's expected to have a maximum lending capacity of €500 billion.
Investors are waiting to see how the ruling may impact the European Central Bank's plans to preserve the euro, which remains near its highest level against the U.S. dollar since May.
On the domestic front, investors are waiting to hear if the Fed will announce highly anticipated new stimulus measures when it wraps up its two-day policy meeting on Thursday.
The price on the benchmark 10-year U.S. Treasury was flat, keeping yields at Monday’s 1.68%.
Oil prices for September delivery tacked on 52 cents to $97.06 U.S. a barrel.
Gold prices sprang to life $6.80 an ounce to $1,738.50 U.S.
Related Stories
