Stocks faded a bit in Toronto by midday Tuesday, despite successful European bond auctions essentially ignoring broad credit rating downgrades by Standard & Poor's on Friday.
The S&P TSX Composite Index fell 12.94 points midday to 12,245.66, after only a slight gain Monday.
The Canadian dollar rose 0.44 cents to 98.69 cents U.S., after the Bank of Canada announced it was keeping its trendsetting policy rate at 1% for another two months and raised its prediction for 2012 economic growth slightly to 2%.
The central bank says economic conditions around the world are deteriorating, but not necessarily for Canada.
Among Canadian stocks, Kinross Gold fell 18.3%, while Barrick Gold Corp. fell 0.9%.
Teck Resources Ltd. rose 2.8% and Sun Life Financial Inc. rose 1%.
Research in Motion surged 2.9% by noon Tuesday, amid word the Waterloo, Ontario-based Blackberry maker was entertaining buyout offers from Samsung.
Elsewhere on the economic front, Statistics Canada reported this morning that foreign investment in Canadian securities strengthened in November with non-residents adding $15.0 billion to their holdings, the largest such inflow of funds since May.
On the other side of the coin, Canadian investors purchased $2.8 billion of foreign securities, evenly split between stocks and bonds.
ON BAYSTREET
The TSX Venture Exchange gained 7.70 points to 1,546.63, while the Nasdaq Canada index grew 11.47 points to 404.30
Nine of the 14 Toronto subgroups remained positive by midday. Global base metals advanced 2%, metals and mining gained 1%, while industrials picked up 0.9%.
The five laggards were weighed by gold stocks, sliding 1.4%, materials, off 1.2%, and health-care issues, ailing 0.3%.
ON WALLSTREET
In New York, stocks were higher midday Tuesday, as investors welcomed several signs of improving global economic growth.
The Dow Jones Industrials spiked 119.65 points, or 1%, to approach noon hour at 12,541.70
The S&P 500 added 11.49 points to 1,300.58, while the Nasdaq Composite gained 29.43 points to 2,740.10
Two major banks, Citigroup and Wells Fargo, released their quarterly results before the opening bell.
Citigroup shares fell 6% after its earnings report, and revenue fell short of forecasts. Wells Fargo shares rose 1% after it beat estimates.
Goldman Sachs reports its results before the market opens Wednesday, while Bank of America and Morgan Stanley are scheduled to release their reports ahead of the opening bell Thursday.
Shares of Carnival, the company that owns the Costa Cruises luxury ship that ran aground Friday, plummeted 13%. At least eleven people died in the wreck. Carnival said Monday it expects to lose at least $85 million U.S.
Shares of Sears soared 10% amid ongoing chatter that the troubled retailer may go private.
Despite the day's spike, Sears' stock remains near its 52-week low, hit earlier this month.
U.S. markets were shuttered Monday for Martin Luther King Day, so Tuesday also marked the first trading day for American markets to react to Standard & Poor's downgrade of nine euro-zone governments, announced Friday evening.
Investors were also encouraged after a German sentiment index came in better than expected, and a report on New York regional manufacturing topped expectations thanks to strength in new orders and employment
However, fears about Europe's debt crisis still hang in the balance. A Fitch official told Reuters Tuesday, that "Greece is insolvent so it will default." Greek officials and private investors are set to resume debt talks on Wednesday.
China's government said the country's economy grew at an annual rate of 8.9% in the last three months of 2011, which wasn't quite as slow as economists had expected.
Treasury prices for the 10-year note eased, pushing yields up to 1.86% from Friday’s 1.85%. Treasury prices and yields move in opposite directions.
Oil for February delivery gained $1.65 to $100.35 U.S. a barrel.
Gold futures for February delivery rose $27.20 to $1,658 U.S. an ounce.
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