The Toronto stock market looked set for a sharp gain at the open as traders caught up to solid advances in commodities and global markets Monday
The S&P/TSX Composite Index soared 203.96 points, or 1.8%, to begin a short week at 11,484.60
The Canadian dollar slid 0.09 to 98.21 cents U.S.
Investors also appeared ready to shop for stocks beaten down over three weeks of sharp declines that took the TSX down to the levels of last October.
Markets across Canada were shuttered Monday for Victoria Day
Among the most active stocks soon after the open, Suncor Energy rose 3% and Kinross Gold advanced 4%.
In corporate news, Canada’s largest operator of convenience stores, Alimentation Couche-Tard Inc. says minority shareholders of Scandinavian convenience store operator Statoil Fuel & Retail have been slow to tender their stock to its friendly takeover offer.
The $2.68-billion U.S. offer has the support of Statoil ASA, the oil company that owns 54% of the Scandinavian convenience store operator. But Couche-Tard requires acceptance by 90% of Statoil Fuel’s shareholders.
ON BAYSTREET
The TSX Venture Exchange leaped 27.40 points to 1,255.28, while the Nasdaq Canada inched up 0.31 points to 366.68.
All but two of the 14 Toronto subgroups emerged from the starting gate on a positive note Tuesday. Metals and mining stocks climbed 3.6%, global base metals gained 3.2%, and gold flourished 3.1%.
The lone laggard was in utilities, while consumer staples were flat at the outset.
ON WALLSTREET
U.S. stocks were mixed early Tuesday, after a downgrade of Japan and forecast for weak global growth spooked investors. Facebook was in focus again, as shares continued to slide.
The Dow Jones Industrials added 49.34 points to open Tuesday at 12,553.82
The S&P 500 picked up 9.92 points to 1,325.91. The tech-rich Nasdaq Composite Index gained 16.89 to 2,864.10.
Some better-than-expected earnings from U.S. retailers helped offset some of the early doom and gloom.
Best Buy, which has been hit by a scandal that cost the CEO his job, along with store closings during the most recent quarter, reported solid earnings even as same-store sales fell 5.3%.
The retailer also reaffirmed its earnings guidance of $3.50 to $3.80 U.S. a share, excluding restructuring charges. Analysts are only looking for earnings of $3.58 U.S. a share this year.
AutoZone also reported better than expected earnings of $6.28 U.S. a share, but weaker than expected revenue sent its shares lower.
Williams Sonoma reported earnings per share of 34 cents U.S. excluding special items, which came in better than forecasts and year-earlier results. The retailer raised its earnings guidance for 2012.
Polo Ralph Lauren is expected to report earnings of 84 cents U.S. a share on $1.6 billion U.S. in revenue, later Tuesday morning, while computer maker Dell is expected to post earnings of 46 cents U.S. a share on $14.9 billion U.S. in revenue.
Investors were disheartened, though, after Fitch downgraded Japan, the world's number-three economy, and suggested further downgrades could be coming.
Early Tuesday, the Organization for Economic Cooperation and Development cut its forecasts for the euro-zone economy to a decline of 0.1% this year, and warned that sovereign debt problems pose a risk to the global economic recovery.
And a report showing lower inflation in the United Kingdom raised hopes that lower price pressures might allow leaders to move toward more stimulus to respond to economic weakness.
On the economic front, analysts surveyed by Briefing.com expect existing home sales for the month of April to have increased to an annual rate of 4.65 million, up from 4.48 million in March. If forecasts are correct, it would mark the first increase in the pace of home sales since January.
The home sales report comes ahead of Wednesday's readings on new home sales, home prices and mortgage applications. New home sales are also expected to post improvement.
The price on the benchmark 10-year U.S. Treasury slid slightly, but the yield remained near the 1.79% level reached late Monday. Treasury prices and yields move in opposite directions.
The price of a barrel of oil slid 49 cents to $92.08 U.S.
Gold futures for June delivery fell $9.20 to $1,580.60 U.S. an ounce.
