Hopes the U.S. budget dispute could be resolved boosted Canadian stock markets on Tuesday, though warnings were sounded that gains could be limited as equity markets remain wary of the risk of failure
The S&P/TSX composite index moved higher 17.01 to begin Tuesday at 12,805.26
The Canadian dollar slid 0.15 cents to 96.83 cents U.S.
Talisman Energy Inc shares surged in after-hours trading on Monday after activist investor Carl Icahn said he had purchased about 61 million shares of the underperforming Canadian oil producer and may seek a seat on the company's board. Talisman shares grew 27 cents to $13.42.
Saputo Inc. bought Warrnambool Cheese and Butter Factory Company Holdings Ltd, potentially kick-starting a wave of foreign purchases in Australia's A$4-billion a year dairy industry. Saputo shares advanced $1.46 to $50.94.
National Bank Financial cut the price target on Exchange Income Corp. to $24 from $28 after the company announced that it expects third-quarter EBITDA to come in at about half of last year's third-quarter results due to weaker than anticipated margins. Exchange shares took on a dollar to $18.99
On the economic slate, Canada Mortgage and Housing Corporation reported that Canadian housing starts rose more than expected in September.
The seasonally adjusted annualized rate of housing starts was 193,600 units last month, up from an upwardly revised 184,000 in August and surpassing analysts' expectations for 185,000.
Statistics Canada reported that out merchandise imports grew 2.1% in August, while exports were up 1.8%. As a result, Canada's trade deficit with the world went from $1.2 billion in July to $1.3 billion in August. The market call was for a negative $0.7-billion figure during the month.
ON BAYSTREET
The TSX Venture Exchange drooped 1.71 points to open Tuesday at 945.81
Nine of the 14 Toronto subgroups started out in positive country, led by information technology issues, up 0.5%, energy, ahead 0.4%, and health-care, haler by 0.3%.
The five laggards were weighed mostly by telecoms, down 0.8%, while global base metals and their cousins in metals and mining each sank 0.2%.
ON WALLSTREET
The mood remains cautious on Wall Street as investors consider Monday's selloff, which was led by heightened uncertainty over the U.S. debt ceiling and government shutdown
The Dow Jones Industrials jettisoned 20.79 points to open Tuesday – day eight of the legislative standoff -- at 14,915.50
The S&P 500 index lost 0.31 points to 1,675.81. The NASDAQ subtracted 3.55 points to 3,766.82.
In the last eight days, the Dow has dropped 193 points.
Tuesday is also the start of third-quarter earnings season, with results due after the closing bell from aluminum producer Alcoa, along with Yum! Brands, the parent of KFC, Pizza Hut and Taco Bell.
Prices for the 10-year U.S. Treasury sagged, raising yields to 2.64% from Monday’s 2.63%. Treasury prices and yields move in opposite directions.
Oil prices took on 72 cents to $103.75 U.S. a barrel.
Gold prices slid $1.30 at $1,323.80 U.S. an ounce.
