Markets in Toronto shook off the cobwebs early Tuesday, trying to climb out of negative territory as the dark tunnel for oil prices continued to get even darker.
The S&P/TSX composite index gained 38.04 points to begin the day at 13,743.18
The Canadian dollar recovered 0.31 cents to 85.99 cents U.S.
Repsol has agreed to buy Talisman Energy, Canada's fifth-largest independent oil producer, for $13 billion, showing how the drop in oil prices is pushing energy companies to take the plunge on big M&A deals. Talisman shares heightened $2.74, or 45.9%, to $8.71.
Encana Corp., Canada's largest natural gas producer, said it would spend more in 2015 as it shifts its focus to its four higher-margin oil-rich shale fields. Encana shares took on eight cents to $13.61.
The federal government said British mobile phone operator Vodafone Group Plc will get $850 million in Canadian trade financing to help it buy enterprise services from BlackBerry Ltd., whose shares gave back 20 cents to $10.80.
Barclays raised the price target on Empire Co to $90 from $82. Empire shares improved 14 cents to $84.41.
Raymond James raised the price target on HudBay Minerals to outperform from market perform. HudBay shares gained a dime to $8.80.
Raymond James cut the target price on Teck Resources to $17 from $20. Teck shares dipped 11 cents to $12.86.
In the economic docket, Statistics Canada reported that manufacturing sales declined 0.6% in October.
The agency also said foreign investment in Canadian securities strengthened to $9.5 billion in October, of both bonds and equity instruments. At the same time, Canadian investment in foreign securities slowed to $293 million, down from an $8.3-billion investment in September.
ON BAYSTREET
The TSX Venture Exchange dipped 1.14 points to 642.15
The 14 Toronto subgroups were evenly divided between gainers and losers. Gold and energy stocks were co-leaders, each progressing 2.4%, while materials took on 0.8%.
The seven laggards were weighed mostly by information technology, down 0.8%, health-care, down 0.5%, and telecoms, sliding 0.2%.
ON WALLSTREET
U.S. stocks fell on Tuesday, with the S&P 500 sliding for a sixth session in seven, as investors worried about the global economy as crude-oil prices declined further and as Russia vowed further action to stabilize its markets after an unexpected interest-rate hike,
The Dow Jones Industrials shed 14.71 points to open for business at 17,166.13
The S&P 500 backslid 5.14 points to 1,984.49, with financials and consumer discretionary stocks falling the most and energy and industrials faring best among its 10 major sectors.
The NASDAQ index dipped 19.72 points to 4,585.44.
New-home construction in the U.S. topped a million on an annualized rate in November, while housing starts fell 1.6% and building permits declined 5.2% last month.
An industry report on Tuesday had the U.S. manufacturing sector continuing to expand in December but its growth rate at an 11-year low.
Wall Street is also looking to hear from the Federal Reserve on Wednesday, with the central bank gathering to consider the timing and size of interest-rate hikes and whether to reiterate its vow to maintain rates low for a considerable period.
Prices for 10-year U.S. Treasuries gained, sharply lowering yields to 2.06% from Monday’s 2.12%. Treasury prices and yields move in opposite directions.
Oil prices dropped $1.80 per barrel to $54.11 U.S.
Gold prices added $3.60 an ounce at $1,211.30 U.S.
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