The Toronto stock market was higher Tuesday as traders cautiously bought into stocks that sustained steep losses in the previous session when disappointing Chinese growth data sent commodities and resource stocks tumbling.
The S&P/TSX index added 99.51 points to greet noon at 12,104.39
The Canadian dollar grew 0.23 cents at 97.77 cents U.S.
TSX gains were led by the mining sectors, the worst hit components on Monday.
The gold sector was up after falling 9% Monday. Kinross Gold advanced 14 cents to $5.68.
But Barrick Gold gave up early gains, moving down eight cents to $20.22 after plunging 11.5% to its lowest level in at least a decade.
The base metals sector was up while May copper in New York gained a penny to $3.28 U.S. a pound after falling eight cents on Monday in the wake of data showing that growth in China, the world’s second-largest economy, slowed to 7.7% in the first quarter from 7.9% in the final quarter of last year.
China has been a main pillar of support in helping the global economy recover from the recession caused by the 2008 financial collapse.
Demand from China has helped lift commodity prices and in turn energy and mining stocks on the resource heavy TSX.
First Quantum Minerals rose $1.10 to $16.68 while Lundin Mining rose eight cents to $4.17.
The energy sector was slightly higher while Suncor Energy advanced 19 cents to $27.69 and EnCana Corp. fell 32 cents to $18.89.
The industrials sector also gave the TSX some lift as Canadian Pacific Railway improved by $1.66 to $123.09.
On the economic front, figures released this morning by Statistics Canada revealed that manufacturing sales advanced 2.6% to $49.6 billion, the largest increase since July 2011.
The agency also reported that folks living offshore reduced their holdings of Canadian securities by $6.3 billion in February, dropping holdings of equities and money market instruments. Meanwhile, Canadian investors acquired $4.4 billion in foreign instruments, largely bonds.
ON BAYSTREET
The TSX Venture Exchange remained positive 3.05 points to 961.31
All 14 Toronto subgroups were higher at noon ET, with metals and mining climbing 3.2%, global base metals streaking ahead 2.2%, and utilities taking on 1.7%.
ON WALLSTREET
U.S. stocks bounced back from the biggest one-day selloff of the year Tuesday, as investors considered a full slate of corporate results and economic reports.
The Dow Jones Industrials Average recovered 120.64 points to 14,719.80
The S&P 500 index gained 16.85 points to 1,569.01. The tech-heavy NASDAQ Composite strengthened 38.40 points to 3,254.89.
Coca-Cola shares jumped 5%, leading the gains on the Dow and S&P 500. Johnson & Johnson shares gained modest ground after the company's first quarter earnings exceeded expectations.
Goldman Sachs also reported solid results, but the bank's shares slid more than 2%.
In other corporate news, Target shares pulled back after the discount retailer lowered its earnings and sales forecast, blaming seasonal factors.
Stocks fell Monday, with the selloff intensifying following news of two explosions in Boston. The Dow plunged 266 points, or 1.8%, while the NASDAQ and S&P both lost more than 2%.
Meanwhile, gold rebounded Tuesday, a day after a 9% tumble to a two-year low. Prices were up more than 2%, hovering just below $1,400 an ounce. Other commodities were mixed.
On the economic front, investors are digesting morning reports on inflation, housing starts, building permits and industrial production. The International Monetary Fund is also due to release new global economic forecasts Tuesday.
The Consumer Price Index slipped 0.2% in March, more than the 0.1% decline that economists expected. Core CPI, excluding food and energy prices, rose 0.1%.
Housing starts for March topped one million for the first time since June of 2008, reaching an annual rate of 1,040,000. Building permits came in at an annual rate of 902,000 in March, slightly less than the forecast of 945,000.
Shares of homebuilders Lennar and PulteGroup were up almost 3%.
Prices on the 10-year U.S. Treasury dipped, raising yields to 1.73% from Monday’s 1.70%. Treasury prices and yields move in opposite directions.
Oil prices was negative 30 cents to $88.41 U.S. a barrel.
Gold prices recovered $27.50 to $1,388.60 U.S. an ounce.
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