The Toronto stock market ran ahead Tuesday as traders bought into stocks that sustained steep losses in the previous session when disappointing Chinese growth data sent commodities and resource stocks tumbling.
The S&P/TSX index added 112.15 points to end Tuesday’s trading at 12,117.03
The Canadian dollar grew 0.44 cents at 97.99 cents U.S.
TSX gains were led by the mining sectors, the worst hit components on Monday.
The gold sector scaled back after falling 9% Monday. Kinross Gold advanced eight cents to $5.60.
But Barrick Gold gave up early gains, moving down $1.00 to $19.30 after plunging 11.5% Monday to its lowest level in at least a decade.
The base metals sector was up while May copper in New York gained three cents to $3.31 U.S. a pound after falling eight cents on Monday in the wake of data showing that growth in China, the world’s second-largest economy, slowed to 7.7% in the first quarter from 7.9% in the final quarter of last year.
China has been a main pillar of support in helping the global economy recover from the recession caused by the 2008 financial collapse.
Demand from China has helped lift commodity prices and in turn energy and mining stocks on the resource heavy TSX.
First Quantum Minerals rose $1.31, or 8.4%, to $16.89 while Teck Resources rose 60 cents to $26.75.
The energy sector was up as Suncor Energy advanced 90 cents to $28.40 and EnCana Corp. took on six cents to $19.27.
The industrials sector also gave the TSX some lift as Canadian Pacific Railway improved by $2.33, or 1.9%, to $123.76.
Financials also improved as Bank of Montreal advanced 88 cents to $63.20.
On the economic front, figures released this morning by Statistics Canada revealed that manufacturing sales advanced 2.6% to $49.6 billion, the largest increase since July 2011.
The agency also reported that folks living offshore reduced their holdings of Canadian securities by $6.3 billion in February, dropping holdings of equities and money market instruments. Meanwhile, Canadian investors acquired $4.4 billion in foreign instruments, largely bonds.
ON BAYSTREET
The TSX Venture Exchange slumped 1.34 points to 956.92
All but two of the 14 Toronto subgroups were higher on the day, with metals and mining climbing 3.2%, global base metals streaking ahead 2.1%, and utilities taking on 1.8%.
The two laggards were gold, down 1%, and materials, sliding 0.2%.
ON WALLSTREET
Equities across the border bounced back from the biggest one-day selloff of the year Tuesday, as investors considered a full slate of corporate results and economic reports.
The Dow Jones Industrials Average recovered 157.58 points, or 1.1%, to close out the day at 14,756.08
The S&P 500 index gained 22.08 points to 1,574.44. The tech-heavy NASDAQ Composite moved higher 48.14 points to 3,264.63.
Coca-Cola shares jumped more than 5%, leading gains on the Dow and S&P 500, after the company topped earnings and sales forecasts.
Johnson & Johnson shares gained modest ground after the company's first quarter earnings also exceeded expectations.
Goldman Sachs reported solid results, but the bank's shares slid more than 2% as investors worried that Goldman may be taking on too much risk to deliver such strong earnings.
In other corporate news, Target shares pulled back after the discount retailer lowered its earnings and sales forecast, blaming seasonal factors.
J.C. Penney shares spiked after Bloomberg reported that the struggling retailer may borrow against its real estate holdings to raise cash.
Stocks fell Monday, with the selloff intensifying following news of two explosions in Boston. The Dow plunged 266 points, or 1.8%, while the Nasdaq and S&P both lost more than 2%.
On the economic front, investors are digesting morning reports on inflation, housing starts, building permits and industrial production. The International Monetary Fund was also due to release new global economic forecasts Tuesday.
The Consumer Price Index slipped 0.2% in March, more than the 0.1% decline that economists expected. Core CPI, excluding food and energy prices, rose 0.1%.
Housing starts for March topped one million for the first time since June 2008, reaching an annual rate of 1,040,000. Building permits came in at an annual rate of 902,000 in March, slightly less than the forecast of 945,000.
Housing stocks spiked, with shares of homebuilders PulteGroup rising nearly 4%, Hovnanian Enterprises adding 1.5% and Lenna rising 1%.
Prices on the 10-year U.S. Treasury dipped, raising yields to 1.72% from Monday’s 1.70%. Treasury prices and yields move in opposite directions.
Oil prices were static at $88.71 U.S. a barrel.
Gold prices recovered $4.20 to $1,365.30 U.S. an ounce, off its highs of the day.
