NEWS

TSX claws back some of Monday's big sell-off

04/16/2013 05:29 EDT | Updated 06/16/2013 05:12 EDT
Stock markets in Canada and the U.S. ended with triple-digit gains on Tuesday, recouping some of the huge paper losses investors incurred in the previous day's big market rout.

At the close of trading, the S&P/TSX composite index was up 115 points at 12,120. Almost every sector was up on the day, with energy and financials up by better than one per cent.

The benchmark index had plunged 332 points in Monday's session as gold lost nine per cent of its value, sliding more than $140 an ounce to a two-year low.

Bullion futures clawed back some of that loss Tuesday, with June futures trading up $26.30 to settle at $1,387.40 an ounce.

Gold stocks that trade in Toronto were up most of the day, but lost ground in late trading. Osisko Mining, which fell 21 per cent on Monday, shed another two per cent on Tuesday. Kinross Gold, which fell almost 14 per cent Monday, slipped another one per cent Tuesday.

Gold miners lose ground

The two biggest TSX-listed gold producers — Barrick Gold and Goldcorp — both traded heavily. Goldcorp stock moved marginally lower while Barrick Gold shares fell another five per cent to a new year-low of $19.20.

Oil futures turned slightly positive in afternoon trading on the New York Mercantile Exchange and ended up a penny at $88.72 US a barrel, following a drop of $2.58 on Monday.

The Dow Jones industrial average rose 158 points to close at 14,758, recovering more than half of Monday's 265-point loss. The technology-heavy Nasdaq composite index and the broader S&P/500 index were both ahead by better than 1.4 per cent.

The Dow was helped by better than expected quarterly earnings reports from Johnson & Johnson and Coca-Cola — both members of the Dow's exclusive list of 30 big companies. Coke shares jumped more than five per cent.

Investors also liked a morning report that U.S. home construction topped an annualized rate of one million last month, the highest level since June 2008.

The loonie gained 0.47 cents to close at 97.99 cents US.

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