Canadian stocks climbed Tuesday, with the benchmark Toronto index tracking gains in global markets a day ahead of a meeting of European leaders, as investors cheered upbeat U.S. housing data.
The S&P/TSX Composite Index soared 171.07 points, or 1.5% -- well off its highs of the day -- to end Tuesday at 11,451.71
The Canadian dollar slid 0.44 to 97.86 cents U.S.
The Toronto benchmark hasn’t closed above 11,500 since May 11. Markets across Canada were shuttered Monday for Victoria Day
Shares of Canadian Natural Resources Ltd. climbed 3.4% to $30.96, Barrick Gold Corp. added 1.2% to $38.33, and Kinross Gold Inc. tacked on 3.8% to $8.13.
Among the standouts, shares of Ithaca Energy Inc. rallied 19% to $2.69 after the company said it raised its position in the Carna discovery in the Southern Gas Basin of the U.K. North Sea. Rival Imperial Oil added 0.7% to $41.36, while Suncor hiked 3.4% to $28.32.
Shares of Niko Resources Ltd. bucked the trend to trade 1.7% lower, closing at $33.48. The company said that along with its partners, it will abandon an exploration site off India’s eastern coast, blaming geological risks as well as the commercial environment in India.
Northern Dynasty Minerals Ltd. saw its stock drop 34.7% to $2.60. The company called a draft Bristol Bay watershed assessment report by the U.S. Environmental Protection Agency on the potential effects of mineral development in southwest Alaska "rushed and inadequate."
ON BAYSTREET
The TSX Venture Exchange leaped 18.87 points to 1,246.75, while the Nasdaq Canada dropped 3.66 points to 362.71.
All but one of the 14 Toronto subgroups finished the day positive. Energy stocks climbed 2.2%, while industrials progressed 2%, and the metals and mining group vaulted 1.8%.
The only laggard was in consumer staples, off 0.3%.
ON WALLSTREET
U.S. stocks moved lower towards the close of business Tuesday, as investors shrugged off a report showing existing home sales surged in April for the first time since January.
The Dow Jones Industrials dropped 1.67 points to end the session at 12,502.80
The S&P 500 sliced off 0.15 points to 1,315.84. The tech-rich Nasdaq Composite Index finished lower by 8.13 points to 2,839.09.
Bank stocks were among the biggest gainers, with shares of JPMorgan Chase rising almost 5%. Bank of America and Citigroup were up more than 3%, while Morgan Stanley and Goldman Sachs were up about 2%..
Some solid corporate earnings from U.S. retailers also helped bolster the mood on Wall Street, with better-than-expected results from troubled retailer Best Buy, as well as AutoZone, Williams Sonoma and others.
Shares of Urban Outfitters popped after the retailer topped earnings expectations.
Polo Ralph Lauren's stock also edged up after the company's profit rose 29% on strong revenue and same-store sales growth. The company also doubled its quarterly dividend. But the company's revenue guidance for fiscal 2013 came in below expectations.
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 initially 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 slate, following the opening bell, the National Association of Realtors said that existing home sales rose 3.4% in April to an annual rate of 4.62 million, up 10% year-over-year and the highest rate since May 2010. Home affordability also came in at record levels.
The home sales report came 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 gained a bit this afternoon slightly, lowering the yield back down to Monday’s 1.79%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil surrendered $1.13 to $91.44 U.S.
Gold futures for June delivery fell $12.10 to settle at $1,576.60 U.S. an ounce.
