Markets in Toronto looked set to open higher as investors took cheer after top officials in the European Central Bank and the Bank of Japan pledged their support for continued monetary easing.
The S&P/TSX composite index was up 29.15 points to end Monday at 12,696.37, with morning futures up 0.6% Tuesday.
The Canadian dollar slid 0.04 cents to 96.67 cents U.S. early Tuesday.
Bank of Nova Scotia said that quarterly profit rose 9.6%, as domestic retail banking income was helped by last year's acquisition of online lender ING Direct.
Valeant Pharmaceuticals International said that the U.S. Food and Drug Administration denied approval for its drug to treat onychomycosis, a fungal infection of the nail. The regulator raised questions about manufacturing and controls related to the drug's container in a complete response letter to the company.
Rating agency Susquehanna raised the target price on Valeant to $105 from $84, saying the acquisition of Bausch & Lomb makes sense and the financial parameters seem better than expected
RBC raised the target price on Kinross Gold Corp. to $8 from $7 to reflect that the miner should continue to outperform due to continued optimization of existing mines
No economic news was due out today.
ON BAYSTREET
The TSX Venture Exchange edged higher 0.13 points Monday to 948.45
ON WALLSTREET
U.S. investors return from a long holiday weekend with a bit more optimism Tuesday, as dovish comments from central bankers in Japan and Europe spark a rally in global markets.
Futures for the Dow Industrials sprinted 112 points, or 0.7%, to 15,419. Futures for the S&P 500 gained 12.6 points, or 0.8%, to 1,663.20, and futures for the NASDAQ tallied 27.5 points, or 0.9%, to 3,019.75
With the major U.S. gauges up about 15% for the year, some analysts believe the market is on the brink of a pullback. Others argue that stocks will continue higher as investors who missed the rally look for opportunities to buy.
In corporate news, Tiffany & Co reported better-than-expected earnings but lowered its revenue outlook.
Valeant Pharmaceuticals said Monday it was buying eye care specialist Bausch & Lomb from private equity firm Warburg Pincus. U.S. shares of Valeant, Canada's largest drug maker, rose 8% in pre-market trading.
There will be some domestic news for investors to chew on as they come off the holiday weekend. The latest edition of the Case-Shiller home-price index is due later this morning, likewise, the Conference Board's consumer confidence index,
A Bank of Japan board member said Tuesday that the central bank would continue to put downward pressure on rates, even if expectations for a Japanese economic recovery were putting upward pressure on rates. Separately, European Central Bank Executive Board member Peter Praet said the ECB could still cut interest rates further if needed.
Asian markets closed firmer Tuesday, with the Nikkei and Shanghai Composite index both rising by 1.2%, while the Hang Seng jumped by 1.1%. European markets also made solid gains in morning trading, with all major indexes up by more than 1%.
Oil prices tacked on 94 cents to $95.09 U.S. a barrel
Gold prices sifted off $8.30 to $1,378.30 U.S.
