The Toronto Stock Exchange followed on Monday’s momentum, as investors looked forward to the two-day U.S. Federal Reserve policy meeting which could give investors hints on the future of its monetary easing program.
The S&P/TSX Composite Index gained 68.56 points, to begin Tuesday at 12,357.46
The Canadian dollar docked 0.17 cents to 98 cents U.S.
Talisman Energy Inc is exploring the sale of its shale assets in the Eagle Ford basin in south Texas, hoping it could raise as much as $2 billion, two people familiar with the matter said on Monday. Talisman shares gained 28 cents to $12.12
Tim Hortons Inc., which recently outlined plans to address the concerns of activist investor Highfields Capital, now faces pressure from another such investor. Tim stocks hiked $1.82 to $55.70.
ON BAYSTREET
The TSX Venture Exchange docked 0.4 points to 933.64
All but three of the 14 Toronto subgroups were higher in the session’s first hour, led by health-care, 1.3% haler, while consumer discretionary and energy stocks each gained 1.1%.
The three laggards were gold, down 1.3%, materials, off 0.5%, and metals and mining, sliding 0.3%.
ON WALLSTREET
U.S. stocks edged higher early Tuesday, as investors digest a pair of economic reports and as the Federal Reserve begins its two-day policy meeting.
The Dow Jones Industrials strengthened 71.99 points to 15,251.80
The S&P 500 index gained 4.18 points to 1,643.22. The tech-rich NASDAQ Composite hiked 14.06 points to 3,466.19.
Sony shares climbed 3% on reports that Dan Loeb's Third Point hedge fund has increased its stake and is upping the pressure on the company to agree a partial spin-off of its entertainment business.
Shares of Hormel fell after the processed meat company lowered its earnings outlook for the year.
Economically speaking, the government's consumer price index for May edged up 0.1%, according to the U.S. Bureau of Labor Statistics. The CPI was expected to have risen by 0.3%. The so-called core CPI, which excludes food and energy prices, rose 0.2%.
Separately, the Census Bureau said the number of new homes breaking ground in May rose 6.8%. The number of building permits filed last month rose 3.1% in the month. The numbers were more or less as expected.
Investors are likely to remain on edge until they hear more from Fed Chairman Ben Bernanke about the central bank's plans for its bond-buying program. Bernanke is set to speak at a news conference Wednesday afternoon.
In a PBS interview that aired late Monday, President Obama told Charlie Rose that Bernanke has "already stayed a lot longer than he wanted, or he was supposed to."
Prices for the 10-year U.S. Treasury sagged, raising yields to 2.20% from Monday’s 2.17%. Treasury prices and yields move in opposite directions.
Oil prices jumped $1.03 to $97.72 U.S. a barrel.
Gold prices strengthened $10.30 to $1,388.10 U.S. an ounce
