Canada's resource-heavy benchmark index rocketed north on Tuesday after a long holiday weekend, buoyed by higher commodity prices and rising hopes for an European interest rate cut.
The S&P/TSX Composite Index mushroomed 269.52 points, or 2.3%, to begin a short week at 11,866.08
The Canadian dollar grew 0.30 cents to 98.62 cents U.S.
Canadian markets were closed Monday in observance of Canada Day.
Stocks to watch this morning include Bombardier Inc., which said on Saturday its aerospace arm had received firm orders worth about $507 million for eight global business aircraft.
The U.S. Justice Department is probing Chesapeake Energy Corp and Encana Corporation for possible collusion after a Reuters report showed that top executives of the two rivals plotted in 2010 to avoid bidding against each other in Michigan land deals
The U.S. pipeline regulator on Monday slapped a $3.7-million fine, the largest penalty ever imposed, on Enbridge Inc, for a July 2010 crude oil spill which contaminated stretches of the Kalamzoo River in Michigan.
San Gold Corp. restarted milling operations Sunday at its Rice Lake Mining complex in Manitoba after a near month-long suspension due to a mechanical failure.
Economically speaking, a report from the Royal Bank commented on manufacturing this morning. The RBC Canadian Manufacturing PMI for June managed to inch higher for the fifth consecutive month. However, the improvement was slight, rising to 54.8 from 54.7 in May.
Any reading above 50 indicates improving conditions in the manufacturing sector with the wider the gap above this break even level, the greater the extent of the improvement.
ON BAYSTREET
The TSX Venture Exchange jumped 23.61 points to 1,214.60. The Nasdaq Canada index added 2.91 points to 359.47
All but one of the 14 Toronto subgroups gained in the first hour. Metals and mining assumed their customary leadership role, up 4%, while energy stocks sprang to life, gaining 3.5% and materials were better by 3.4%.
The lone holdout was in health-care which retreated 0.3%.
ON WALLSTREET
U.S. stocks were nearly flat as markets opened a quiet holiday-shortened trading day, with trading volume expected to be light.
The Dow Jones Industrials tacked on 26.37 points to open at 12,897.76
The S&P 500 hiked 3.38 points to 1,368.89. The Nasdaq Composite Index added 8.01 points to 2,959.24.
Investors will have auto sales and factory orders out of the United States to consider this morning, but the big market-moving news comes Friday when the government releases June unemployment numbers.
Many investment professionals are off for the week. U.S. markets will close at 1 p.m. ET on Tuesday, and remain dark Wednesday to celebrate Independence Day.
Barclays chief executive Bob Diamond will step down from his post, the bank said Tuesday.
The news came a day after Barclays chairman Marcus Agius announced his own resignation amid the widening scandal surrounding the bank's manipulation of interbank lending rates. However, Agius was renamed chairman to lead the search for a new CEO on Tuesday. Barclays shares were up on the news.
Automakers Ford and General Motors will report June U.S. sales figures on Tuesday, as will Japanese-based rivals Toyota and Honda. Ford warned last week that second-quarter losses from overseas operations -- particularly in Europe -- would be bigger than expected.
After Monday's close, Microsoft announced it would take a $6.2 billion U.S. writedown on its aQuantive acquisition. It purchased the online advertising company in 2007 for $6.3 billion U.S. in cash.
Economically speaking, the Institute for Supply Management said its June Purchasing Manufacturers Index fell to 49.7, down from 53.5 in May. It was the first time the index fell below 50, which signals expansion in the sector, since July 2009.
Factory orders for May were due out at 10 a.m. ET. Economists at Briefing.com forecast the number to rise to 0.5%, up from 0.4% in April. Orders fell 0.6% in April after declining 2.1% in March.
The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 1.60% from 1.58% late Monday. Treasury prices and yields move in opposite directions.
Oil for August delivery rose $3.22 to $86.97 U.S. a barrel.
Gold futures for August delivery gained $19 to $1,617.80 U.S. an ounce.
