The S&P/TSX composite index raced higher today -- up 890.50 points to 9,955.66 -- led by a jump in energy stocks -- as investors reacted to global efforts aimed at unfreezing credit markets and getting money flowing through the pipelines.
The Group of Seven finance ministers and central bank governors urged whatever steps are necessary to restore market confidence.
In Paris, leaders of the 15 euro-zone countries agreed Sunday to an action plan that will guarantee loans between banks through 2009 and allow governments to buy stock in distressed financial companies.
On Monday, the European Central Bank, the Bank of England and the Swiss National Bank said they would lend unlimited amounts of dollars to banks. Australia has guaranteed wholesale funding for banks. Britain said it would inject as much as $63 billion into three banks, and Germany and France unveiled bank rescue plans worth $1.1 trillion.
In Canada -- Finance Minister Jim Flaherty said Monday that Ottawa will act to prevent unintended consequences from policy measures by other countries that would put Canada's banks at a competitive disadvantage.
The Bank of Canada said Tuesday the U.S. and European moves will benefit the Canadian financial system, and it continues to expand liquidity provisions to financial institutions in Canada.
In corporate news -- Bombardier Transportation has announced an order worth US$101 million from leasing company Railpool GmbH for 45 double-deck coaches. The cars are destined for service on Danish State Railways.
The Canadian dollar, meanwhile, was trading down 1.31 cents to 86.05 cents US after dropping 2.6 cents last Friday.
BAYSTREET
All of the TSX sub-groups traded higher today -- energy issues were up 13.93 percent followed by a 12.96 percent gain in financial stocks and a 9.81 percnt rise in mining issues.
COMEX gold for December delivery settled down $3 to $839.50 US an ounce.
Meanwhile, the TSX Venture Exchange was up 78.89 points to 1054.70 while NASDAQ Canada stocks were off 13.78 points at 609.12.
ON WALLSTREET
U.S. stocks on Tuesday ended solidly lower as cheer over the government's plan to invest billions in banks gave way to worries over the economy, which especially dented shares in the consumer-discretionary and technology sectors.
The Dow Jones Industrial Average, up more than 400 points earlier, was lately up just 19.5 points at 9407, and the S&P 500 was up just 1.5 points to 1004. The Nasdaq was giving back 39 points to 1804.
On Tuesday, the Bush administration announced plans to recapitalize U.S. banks in an effort to end the credit freeze that has slammed the global economy. Among the moves announced: a $250 billion investment in nine major banks and a plan for the the Federal Deposit Insurance Corp. will back up new senior bank debt for three years.
In corporate news -- shares of Morgan Stanley skyrocketed 25.25 percent after Mitsubishi UFJ Financial's $9 billion investment into the troubled investment bank went through.
Dow component Johnson & Johnson reported quarterly earnings that ralllied from a year ago and topped estimates. The health care company also boosted its full-year profit forecast.
Soft drink maker PepsiCo reported weaker-than-expected third-quarter earnings and said it would cut 3,300 jobs due to the global economic slowdown.
Treasury bond prices tumbled, raising the corresponding yields. The 10-year note lost 1-3/32, yielding 4.01 percent from 3.88 percent late Friday. Treasury prices and yields move in opposite directions.
U.S. light crude oil for November delivery settled down $2.56 to $78.63 US a barrel on the New York Mercantile Exchange. Oil prices have tumbled on bets of slowing demand since the price of crude hit an all-time high of $147.27 a barrel on July 11.
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