Equity markets in Canada’s biggest centre were headed for their biggest daily gain for the year on Tuesday, after the Chinese government announced an interest rate cut overnight following Monday's volatile global rout.
The S&P/TSX composite index climbed 320.34 points, or 2.4%, to greet noon at 13,372.98, after a loss of more than 400 points Monday.
The 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.
Banks, which will report quarterly results this week, were the index leaders, with Toronto-Dominion Bank jumping 4.1% to $51.01. Royal Bank of Canada advanced 3.7% to $73.35.
Bank of Montreal rallied 4.6% to $69.23 after reporting a third-quarter profit that topped expectations.
The financials group tumbled 2.8% on Monday. Prior to Tuesday's gains, it had fallen more than 9% through August.
Energy shares also gained, as Suncor Energy rose 3.4% to $34.05.
Barrick Gold Corp was the most influential decliner, falling 4.3% to $9.16.
ON BAYSTREET
The TSX Venture Exchange gained 11.86 points, or 2.3%, to 530.35
All but two of the 14 TSX subgroups were positive, led by energy, global base metals and the metals and mining groups, each up 4%.
The two laggards were gold, tumbling 2%, and materials, down 0.3%.
ON WALLSTREET
U.S. stocks jumped more than 2% on Tuesday, attempting a bounce after the Dow's worst three-day point drop in history, as a recovery in oil prices and overnight easing in China helped investor sentiment.
The Dow Jones industrial average restored 344.10 points, or 2.2%, to break for lunch at 16,215.45, after a dip of nearly 600 points yesterday. Apple surged nearly 6% leading all blue chips except Merck higher.
The S&P 500 took on 47.06 points, or 2.5%, to 1,940.27, to recover from correction territory on an intraday basis, and held out of correction territory on an intraday basis.
The NASDAQ index gained back 153.15 points, or 3.4%, to 4,679.40, as Netflix and Chinese stocks such as JD.com and Baidu led advancers. Alibaba gained more than 4%.
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 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 U.S, 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 2.11% from Monday’s 2.02%. Treasury prices and yields move in opposite directions.
Oil prices regained $1.18 a barrel to $39.42 U.S.
Gold prices plummeted $17.10 to $1,136.50 U.S. an ounce.
