Canadian stocks enjoyed healthy gains Tuesday, propelled by gold-mining stocks and a 6% rise in Bombardier Inc. shares.
The S&P/TSX Composite Index ended the day up 95.52 points to 11,497.30
The Canadian dollar perked 0.46 of a cent to 97.45 cents U.S.
Bombardier Inc., manufacturer of planes and trains, was among Canada’s top percentage gainers, climbing 6% to $3.87.
Shares rose following an order by NetJets of up to 275 Bombardier Challenger business jets. The order was the company’s largest business-aircraft sale in Bombardier history, it said, valued at approximately $7.3 billion U.S.
Gold miners also tacked on major gains, with IAMGold Corp. rising 4.2% to $12.77. Other significant movers were Eldorado Gold Corp., up 3.8% to $12.46, and NovaGold Resources Inc., up 1.7% to $6.06.
In the oil patch, Canadian Oil Sands Ltd. rose 1.5% to $19.26.
In other corporate news, Canadian Pacific Railway’s David Raisbeck will step down as a member of its board of directors, reducing the number of directors at the company who were appointed before a proxy battle and subsequent boardroom shakeup.
His resignation comes just weeks after New York-based Pershing Square Capital Management, CP’s biggest shareholder, succeeded in its months-long battle to oust Fred Green as CEO.
CP shares dropped 33 cents to $73.54
Ivernia Inc. is withdrawing from the Prairie Downs base metals project in Western Australia. Ivernia says a review of geological data shows the project’s potential does not justify exercising a purchase option under its earn-in agreement with Prairie Downs Metals Ltd.
Shares in Ivernia advanced a penny, or 11.8%, to 9.5 cents.
Elsewhere, farm products retailer Agrium Inc said it expects its second-quarter earnings to be at or near the top of its forecast range due to higher prices for some of its wholesale fertilizer products. Agrium shares vaulted $3.39, or 4.2%, to $84.71.
ON BAYSTREET
The TSX Venture Exchange docked 7.01 points to 1,269.70. The Nasdaq Canada index added 6.56 points to 368.67
All but three of the 14 Toronto subgroups were still positive, led by gold, up 1.8%, materials, surging 1.7%, and global base metals, climbing 1.4%.
The three laggards were telecoms, down 0.2%, metals and mining and consumer staples, each off 0.1%.
ON WALLSTREET
U.S. stocks rebounded Wednesday, despite growing worries over the fate of Europe's banking system.
The Dow Jones Industrials soared 162.57 points, or 1.3%, to end the day at 12,573.80
The S&P 500 was 15.24 points higher to 1,324.17. The tech-rich Nasdaq Composite Index moved up 33.34 points to 2,843.07, each index also up more than 1%.
The gains were broad with financial shares among the leaders. Shares of JPMorgan Chase, Bank of America and Citigroup were up between 1.5% and 2.5%.
Several traders said the gains were nothing more than a relief rally after Monday's steep selloff. Volume was said to be on the light side as well, one expert saying that markets were "in a holding pattern."
Shares of Berkshire Hathaway moved higher after the fund made an offer to purchase the mortgage division and loan portfolio of Residential Capital in its Chapter 11 proceedings.
Shares of Zynga sank to an all-time low dropping more than 12% on fears of a sharp drop in users for the social gaming company.
Shares of Michael Kors shot up, after the fashion retailer reported fiscal fourth-quarter sales that more than doubled from last year's results. The report easily topped forecasts as well as the company's earlier guidance.
Juniper Networks shares rose, after the company announced a $1-billion U.S. share repurchase plan late Monday.
Apple shares nudged higher Tueday after dropping Monday -- the day of its developers’ conference. Its announcement of the new MacBook Air and other products wasn't enough to pull it from a recent slump.
Shares of First Solar soared after news reports said the company would not close a German plant until the end of the year because of unexpected increase in demand in Europe.
Europe continues to be a worry, with yields on 10-year Spanish bonds hitting a euro-era high of 6.8%, indicating just how fearful investors are of the safety of Spain's sovereign debt.
Italian bond yields also rose Tuesday, remaining above the 6% benchmark -- a warning sign that the country could need a bailout of its own.
Adding to the pressure on Spain's banking system, Fitch Ratings downgraded 18 Spanish banks.
Elections in Greece this Sunday are seen as a pivotal moment that could determine if the country remains a member of the euro currency union. And early next week, leaders from the Group of 20 will be meeting in Mexico.
Economically speaking, the U.S. Treasury Department released its monthly budget report showing a $125-billion U.S. deficit. It was a reverse of course after the Treasury revealed a $59-billion U.S. surplus in April, the first monthly budget surplus since September 2008.
The price on the benchmark 10-year U.S. Treasury slumped slightly, raising yields to 1.66% from Monday’s 1.60%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil picked up $1.25 to $83.45 U.S.
Gold futures for August delivery gained $17 to $1,613.80 U.S. an ounce.
