TORONTO - The resource sector provided early lift for the Toronto stock market Tuesday amid higher prices for oil and gold.
The S&P/TSX composite index gained 40.16 points to 13,426.65 while the TSX Venture Exchange was ahead 2.24 points to 1,924.15.
The Canadian dollar was off early lows amid a surge in oil prices, up 0.02 of a cent to 104.1 cents US.
The energy sector pulled ahead 0.7 per cent amid a sharp jump in crude prices. The August contract on the New York Mercantile Exchange was up $1.38 from last Friday's close to US$96.32 a barrel. Suncor Energy (TSX:SU) rose 29 cents to C$38.78 while Canadian Natural Resources (TSX:CNQ) gained 28 cents to $41.19.
Gold prices also climbed with the August contract on the Nymex ahead $25.90 to US$1,508.50 an ounce. The gold sector rose 0.3 per cent as Kinross Gold Corp. (TSX:K) climbed 34 cents to C$15.73 but Goldcorp Inc. (TSX:G) faded four cents to $46.64 after Deutsche Bank downgraded the stock from buy to hold.
The base metals sector was the only decliner, down 0.3 per cent with copper unchanged at US$4.31 in New York. Sherritt International (TSX:S) gained eight cents to C$6.42.
But Thompson Creek Metals Co. Inc. (TSX:TCM) was down 23 cents to $9.74 after Deutsche Bank also downgraded that company's stock from buy to hold.
The consumer staples sector was ahead 0.24 per cent as Quebec-based pharmacy chain Jean Coutu Group Inc. (TSX:PJC.A) reported that its profits increased to $49.9 million or 22 cents a share in the first quarter, beating analyst estimates by two cents a share. Revenue grew to $660.6 million from $646.3 million. It is also selling about 10 per cent of its holdings in American drug store chain Rite Aid Corp. and its shares gained 23 cents to $11.38.
Investors looked to a raft of U.S. economic data this week that culminates with the non-farm employment report for June which comes out on Friday.
Traders will also take in Canadian employment data for June at the end of the week.
Investors will take in the factory orders report for May mid-morning and economists while Wednesday will see the release of the monthly non-manufacturing survey from the Institute for Supply Management.
Last week’s ISM manufacturing survey came in much better than anticipated, raising hopes that the recent soft patch in U.S. economic data may have only been a temporary blip associated with the devastating earthquake in Japan and a sharp runup in energy prices.
Meanwhile, worries that Greece may end up defaulting on its massive debts continued to cast a shadow over markets. On Monday, ratings agency Standard & Poor’s warned that a plan for French banks to rollover the country’s debts would be considered a Greek debt default.
New York markets were weak with the Dow Jones industrial average down 16.57 points to 12,566.2.
The Nasdaq composite index was 1.43 points lower to 2,814.6 while the S&P 500 index declined 3.94 points to 1,335.73.
In other corporate news, transportation giant Bombardier Inc. (TSX:BBD.B) was in focus after its Bombardier Transportation division announced it will cut more than 1,400 jobs in Britain after it failed to win a contract for building rail carriages. Bombardier lost out to Germany's Siemens in bidding to build new passenger trains. Its shares drifted four cents lower to $6.87.
Simulator builder and flight training company CAE Inc. (TSX:CAE) has been awarded military contracts valued at more than $115 million, including one from the U.S. navy to develop two MH-60R helicopter simulators. Its shares added three cents to $13.03.
SNC-Lavalin (TSX:SNC) has acquired MDH Engineered Solutions, a Saskatchewan-based engineering consulting and research firm, for an undisclosed amount. The Montreal-based engineering company’s shares rose 33 cents to $59.44.
Earlier in Asia, Japan’s Nikkei 225 index rose slightly, South Korea’s Kospi was ahead 0.8 per cent while Hong Kong’s Hang Seng slipped 0.1 per cent.
In mainland China, the Shanghai Composite Index gained 0.1 per cent and the Shenzhen Composite Index added 0.6 per cent despite mounting speculation that the People’s Bank of China may raise interest rates soon to keep a lid on high inflation.
European indexes were mixed as data showed that retail sales in the 17 euro countries dropped by 1.1 per cent during May in a further sign that the eurozone economy is slowing down sharply from a largely export-based rebound.
London's FTSE 100 index ahead 0.1 per cent, Frankfurt's DAX was up 0.18 per cent and the Paris CAC 40 was off 0.45 per cent.
