Toronto's main stock index posted fair gains on Tuesday, tracking global markets that rose on possibility of further policy stimulus in China.
The S&P/TSX Composite Index picked up 49.32 points to begin Tuesday’s trading at 11,615.47.
Bank of Nova Scotia shares slipped 0.3% after the lender reported earnings for the second quarter that topped analyst expectations. Shares of both Canadian National Railway and Canadian Pacific Railway were down about 2%.
Other stocks to watch included Lone Pine Resources Inc. Forest Oil Corp said a lawsuit was brought against it and Lone Pine Resources, which it earlier owned, that alleged Lone Pine made false statements and hid certain facts in its IPO prospectus.
Publisher Postmedia Network Canada Corp said it will cut costs by dropping some Sunday editions, charging online fees for several titles and centralizing more editorial production.
ON BAYSTREET
The TSX Venture Exchange inched forward 0.32 points to 1,325.33. The Nasdaq Canada index tacked on 3.62 points to 369.11.
In all, nine of the 14 Toronto subgroups were up at the outset. Global base metals were boosted 2.6%, while their cousins in the metals and mining sector strengthened 2.4%, and health-care issues were 1% more robust.
The five laggards were weighed mostly by gold, off 0.5%, while telecoms and utilities each slid 0.4%.
ON WALLSTREET
U.S. stocks rose at the open Tuesday, following overseas markets higher, on easing tensions in Europe and hopes for more stimulus in China.
The Dow Jones Industrials began a short week up 128.47 points, or 1%, to 12,583.30
The S&P 500 recovered 13.85 points to 1,331.67. The tech-rich Nasdaq Composite Index perked 32.78 points to 2,870.31
Shares of Facebook fell another 3.4% to $30.84 U.S., hitting a new low since the social network debuted as a public company earlier this month.
U.S. investors came off a holiday weekend with a renewed focus on Europe's debt crisis, which has been dominant in recent months.
Investors were encouraged by signs over the weekend that pro-bailout parties in Greece were gaining in the polls. In addition, four major Greek banks received recapitalization funds under the nation's bailout program.
The extra capital helped ease concerns that a so-called bank jog in Greece could develop into a full-blown bank run.
Spain is also prominent in investors' minds amid fresh worries about the health of its banking system, after the Spanish government agreed last week to inject €19 billion into one of the nation's largest lenders.
The yield on 10-year Spanish government bonds eased slightly Tuesday, one day after the spread between Spanish and German debt reached the highest level since the creation of the euro.
Investors have also been fearful that the slowing of China's economy could cause a so-called "hard landing" for the world's number-two economy. But there is speculation Beijing will announce more stimulus spending in China, including a program to spur auto purchases.
The focus could shift back to the U.S. economy from overseas worries, given the importance of upcoming reports.
Due later this week is the May jobs report, as well as key readings on manufacturing and auto sales. Economists forecast that employers added 150,000 jobs in May, and that unemployment remained at 8.1%.
U.S. stocks fell Friday, but ended higher for the week, as concerns about the debt crisis in Europe continued to weigh on the market. U.S. markets were closed Monday for Memorial Day.
Worries over Greece's future and the broader region's debt problems have already triggered deep losses in U.S. stocks and international markets this month. The S&P 500 and Dow are down almost 6% in May, and headed for their worst monthly losses since November 2011.
Economically speaking, the Case-Shiller 20-city Index, which tracks home prices, fell 2.6% in March, after falling 3.5% in the prior month. Economists had expected the index to have slipped 2.8%.
Also, the Conference Board's Consumer Confidence Index for May is expected to come in at 69, according to a survey of analysts by Briefing.com, down from 69.2 last month.
The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 1.72% from 1.74% late Friday. Treasury prices and yields move in opposite directions.
The price of a barrel of oil was ahead 63 cents to $91.46 U.S.
Gold futures for June delivery added 20 cents to $1,573.20 U.S. an ounce.
