The Toronto stock market open higher on speculation that Germany will provide more flexibility to use European bailout funds and as European Central Bank President Mario Draghi kept the door open to further interest rate cuts.
The S&P/TSX Composite Index reclaimed 36.57 points to begin the day at 11,671.24
The Canadian dollar gained 0.14 cents at 98.24 cents U.S.
Among stocks to watch this morning, Latvia-based Air Baltic Corp has signed a letter of intent to buy 10 CS300 aircraft from Bombardier worth $764 million at list prices, the two firms said at the Farnborough Airshow on Tuesday.
A delay in the launch of the new generation of BlackBerrys by Research In Motion until next year will give retailers more time to focus on the revamped smartphones once they hit store shelves, RIM's new marketing chief said on Monday.
Economically speaking, housing starts mushroomed in June, according to figures released this morning by Canada Mortgage and Housing Corporation.
The federal agency estimates 20,327 actual starts in June across the country, up from 18,494 in June 2011, with much of the jump coming from multiple starts – namely, condos and apartments.
ON BAYSTREET
The TSX Venture Exchange jumped 6.03 points to 1,218.01. The Nasdaq Canada index regained 3.27 points to 353.79.
All but two of the 14 Toronto subgroups were positive to begin the day, mostly on the backs of financial, industrial and gold stocks, each up 0.4%.
The lone loser was in consumer staples, down 0.1%, while information technology issues started the day flat.
ON WALLSTREET
U.S. stocks opened higher Tuesday after euro-zone finance ministers agreed to accelerate an initial bailout for ailing Spanish banks.
The Dow Jones Industrials recovered 58.51 points to 12,794.80
The S&P 500 took on 5.73 points to 1,358.19. The Nasdaq Composite Index added 14.54 points to 2,946.31.
Financial shares were among the biggest gainers, with shares of Bank of America, Citigroup and American Express were up between 1% and 2%.
Aluminum producer Alcoa marked the unofficial beginning of second-quarter earnings season Monday, when it released results after the bell that were roughly in line with analysts expectations.
Results are due later in the week from banking giants JPMorgan and Wells Fargo
Overall, analysts are expecting underwhelming corporate results, with earnings dropping off compared to the first quarter.
Shares of Barclays rose 3% in early trading, after the British bank reached a deal with outgoing CEO Bob Diamond, who quit as the bank faced criticism for its role in the Libor scandal. Although Diamond continues to receive salary and some benefits for a year or so, he declined his deferred bonus worth up to £20 million ($31 million U.S.).
Shares of microprocessor manufacturer Advanced Micro Devices plummeted after the company warned late Monday that it expects second quarter revenue will drop 11% from the previous quarter because of weaker sales in China and Europe.
Troubled BlackBerry-maker Research In Motion holds its annual shareholder meeting on Tuesday. Late last month, the company announced 5,000 layoffs, a giant quarterly loss and another delay to its next BlackBerry operating system. Its shares were up in early trading.
Late Monday, euro-zone finance ministers agreed that Spain would be offered an initial €30 billion by the end of the month to help bail out its troubled banks. The move is aimed at helping the euro-zone's fourth-largest economy from needing a full bailout itself.
Yields for the 10-year Spanish bond slid to 6.83% following the eurozone announcement. Yields have been recently bouncing above the 7% mark, which heightens bailout worries.
As ministers met in Brussels, the highest court in Germany -- the nation leading the push for austerity -- began hearings to examine the impact of the new bailout fund on Germany's ability to manage how taxpayer funds are doled out.
More signs of a global economic deceleration came from China, which reported worsening year-over-year import growth early Tuesday. June came in at 6.3%, half of May's 12.7%, pointing to weak demand.
Economically speaking, last year, 18.6% of youth across 34 countries were neither employed nor in school or training programs, according to the Organization for Economic Cooperation and Development's Employment Outlook 2012 report released on Tuesday. In the United States, that percentage was 14.8%.
A lack of jobs for workers ages 15 to 24 could create a "scarring effect" on their long-term career paths and future earnings prospects, the OECD said.
The OECD also predicts the unemployment rate across the United States, Europe, Japan and Mexico will stay above 7.7% by the end of 2013 -- barely better than its current 7.9%.
The price on the benchmark 10-year U.S. Treasury lost ground, pushing the yield up to 1.52% from 1.51% late Monday. Treasury prices and yields move in opposite directions.
Oil for August delivery shaved off 35 cents to $85.64 U.S. a barrel.
Gold futures for August delivery rose $9.90 to $1,600.10 U.S. an ounce.
