Stocks in Canada’s biggest market settled down appreciably Tuesday afternoon from an initial rush of Tuesday morning, following more favourable news from the Far East.
The S&P/TSX composite index climbed 98.19 points – well off its highs of the day -- to finish at 13,150.93, after a loss of more than 400 points Monday.
A 25-basis-point cut for the one-year benchmark lending rate by the People's Bank of China helped global markets to rebound.
Investors fretting over the global impact of slower Chinese growth sparked panic selling around the world on Monday.
Utilities led the charge among TSX subgroups, powered by Superior Plus, gaining 47 cents, or 4.6%, to $10.74, while Algonquin Power & Utilities took on 38 cents, or 4.3%, to $9.23.
Financials were also stronger, as Canadian Western Bank tacked on 97 cents, or 4.4%, to $23.12, while Laurentian Bank soared $1.34, or 3%, to $46.78.
Also climbing was the energy sector, led by Lightstream Resources, moving skyward 4.5 cents, or 14.3%, to 36 cents, while Penn West Petroleum gained six cents, or 7.8%, to 83 cents.
Gold provided one of the few negative spots on the market, as Guyana Goldfields fell 40 cents, or 9.9%, to $3.64, while Yamana Gold lost 19 cents, or 7%, to $2.51.
ON BAYSTREET
The TSX Venture Exchange gained 8.05 points to 526.44
All but four of the 14 TSX subgroups were positive, led by utilities, surging 2.1%, financials, better by 2%, and energy, 1.7% to the good.
The four laggards were weighed most by gold, down 2.8%, materials, sifting off 1.1%, and telecoms, fading 1%.
ON WALLSTREET
U.S. stocks closed lower, after a failed attempt to rally from the Dow's worst three-day point decline in history, as investor confidence waned amid continued concerns about China and global growth.
The Dow Jones industrial average fell another 204.91 points, or 1.3%, to close at 15,666.44, after rallying nearly 3% earlier, their biggest reversal to the downside since Oct. 29, 2008.
The S&P 500 deleted 25.59 points, or 1.4%, to 1,867.62, remaining in correction territory after falling there on Monday. The index also posted its first six-day losing streak since July 2012.
The NASDAQ index slid 19.76 points to 4,506.49.
Morning leaders such as Netflix and Chinese stocks such as JD.com and Baidu still closed more than 4% higher. Alibaba gained 4.2%.
However, Apple clung to gains of just 0.6% after earlier surging more than 7%
In earnings, Best Buy, Toll Brothers and Sanderson Farms reported before the market open.
Best Buy beat estimates by 15 cents U.S. with adjusted quarterly profit of 49 cents U.S. per share, with revenue also beating forecasts. Same-store sales rose 2.7%, compared to the Thomson Reuters forecast of a 1% increase.
Luxury homebuilder Toll Brothers reported a 12% rise in third-quarter orders. Earnings and revenue were roughly in line with estimates, although profits were down from a year earlier.
Poultry producer Sanderson Farms posted earnings that fell substantially shy of the $2.90 U.S. consensus estimate with quarterly profit of $2.27, while revenue was also below forecasts. The company said a key factor in the quarter's results was continued pricing pressure.
BHP Billiton reported full-year earnings earlier Tuesday which sent shares around 3% higher in London. This came despite the mining giant reporting an 86% plunge in net profit on the back of falling commodity prices, but investors cheered the group's cost-cutting measures.
On the data front, there are a flurry of housing market indicators due Tuesday, with the Case-Shiller home price indices for June showing home prices rose less than expected.
New home sales figures for July came in at an annual rate at 507,000.
The Conference Board's consumer confidence indicator for August came in at 101.5.
Prices for 10-year U.S. Treasuries dropped sharply, raising yields to 2.08% from Monday’s 2.02%. Treasury prices and yields move in opposite directions.
Oil prices regained 65 cents a barrel to $38.89 U.S.
Gold prices plummeted $14.40 to $1,139.20 U.S. an ounce.
