Canadian stocks extended gains into a second session on Tuesday as European Union finance ministers met to discuss the region’s ongoing debt crisis.
The S&P TSX Composite Index ended Tuesday’s session ahead 92.29 points to 11,732.50
The Canadian dollar advanced 0.39 cents to 97.05 U.S. cents, as investors eased out of the safe-haven U.S. dollar.
Energy stocks led gainers in Toronto as crude-oil futures rose on higher U.S. consumer confidence numbers.
Shares of Nexen Inc. added 4.5% to $15.95 after the oil and gas producer announced a shale-gas partnership with a Japanese group. Nexen also announced its 2012 guidance, which included a projected 15% increase in cash flow.
Elsewhere, in the energy sector, Imperial Oil sprang upwards 1.2% to $41.98, while Suncor tacked on 1.5% to $29.35
Elsewhere, Toronto-listed shares of Research In Motion Ltd. jumped 5.5% to $17.95 after the smartphone maker announced a new service to allow corporate customers to manage mobile devices of rivals as well as the BlackBerry.
Among other heavyweight gainers, shares of Ivanhoe Mines Ltd. gained 3.4% to $20.62, while shares of the Bank of Montreal added 1.2% to $57.41, while rival Royal Bank added 1.6% to $45.01.
ON BAYSTREET
The TSX Venture Exchange settled 7.68 points, however, to 1,505.01, while the Nasdaq Canada index added 5.17 points to 388.41.
All but four of the 14 Toronto subgroups advanced, led upwards by energy stocks, up 1.7%, utilities, ahead 1.6%, and the metals and mining group, up 1.4%.
The laggards were weighed by consumer discretionaries, down 0.4%, industrials, down 0.3%, and real-estate issues, off 0.2%.
ON WALLSTREET
In New York, stocks finished mostly higher Tuesday, with the Dow and S&P extending gains from the previous day's rally, as investors remained hopeful that leaders are making progress on addressing the euro-zone debt crisis.
The Dow Jones Industrials gained 32.62 points to end the session at 11,555.60
The S&P 500 increased 2.64 points, to 1,195.19, while the Nasdaq Composite settled back 11.83 points to 2,515.51, with Green Mountain Coffee Roasters, Wynn Resorts and Netflix dragging on the index.
Financial stocks, which led Monday's advance, were also among the losers Tuesday. Bank of America and JPMorgan Chase posted the biggest declines in the Dow. Shares of Morgan Stanley and Goldman Sachs also fell. Bank of America's stock dropped to $5.03 U.S, the lowest since March 2009.
American Airlines' parent company, AMR Corp., announced that it has filed for Chapter 11 bankruptcy in order to "achieve a cost and debt structure that is industry competitive." The company's stock plunged more than 80%.
Shares of rival airlines, including Delta and United Continental gained traction.
Shares of Tiffany & Co. sank after the luxury jewelry retailer reported earnings that topped forecasts, but reeled in its guidance for the fourth quarter.
Corning's stock tumbled after the company slashed its fourth-quarter outlook for profit and production of glass for LCD displays, after a major Korean customer notified Corning that it will not honour its contract for the remainder of the year.
Nerves were strained after Moody's warned that 87 banks across 15 of the 17 euro-zone countries could face downgrades and Italy auctioned €7.5 billion of three- and 10-year bonds that drew the highest yields in years. Borrowing costs in Italy have been above the uncomfortable 7% mark for days.
But investors are banking on European leaders to step up and agree to a detailed resolution to Europe's debt crisis.
European leaders are working on a new plan to ensure fiscal discipline across the euro area. The proposal is expected to give the European Union greater authority over the budget policies of individual euro-zone nations.
A two-day meeting of euro-zone finance ministers got underway Tuesday. However, investors aren't expecting any major announcements until a European Union summit next week.
Economically speaking, stocks also found support after the U.S. Conference Board's Consumer Confidence Index shot up to 56 in November from 39.80 the prior month. Economists were expecting the reading to come in at 42.5.
Elsewhere, the S&P/Case Shiller index, a gauge of home prices in 20 major cities, dropped 3.6% in September compared to a year ago, following a 3.8% decline in the previous month. Analysts surveyed by Briefing.com expect prices to have dropped 3.0% versus a year ago.
The price on the benchmark 10-year U.S. Treasury moved lower, pushing the yield up to 2.00% from 1.96% late Monday. Treasury prices and yields move in opposite directions
Oil for January delivery added $1.62 to $99.83 U.S. a barrel.
Gold futures for December delivery rose $2.60 to settle at $1,713.40 U.S. an ounce.
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