Toronto stocks move well into positive territory and are on target for their first positive close in three sessions. Mining and financial stocks are leading the gainers, recovering some of yesterday's losses.
The S&P/TSX Composite Index has gained 175.79 points or 2.04% to 8,772.01.
Mining stocks have gained 5.2% in the early going. FNX Mining (FNX.TO) has surged 11% and Teck Cominco (TCK.B.TO) has rallied 5.6%.
Financials are up 3.8%. Among the big six banks, Bank of Montreal (BMO.TO) has surged 5.6%, Toronto-Dominion (TD.TO) is up 4.7%, CIBC (CM.TO) has rallied 3.9% and Royal Bank (RY.TO) is up 3.6%.
Sun Life Financial (SLF.TO) has rallied 7.4% after the company announced the completion of a public offering in Canada of C$500 million principal amount of Series 2009-1 Subordinated Unsecured 7.90% Fixed/Floating Debentures due in 2019.
The Energy Index is up 1.5%, led by an 8% jump for Canadian Oil Sands (COS.UN.TO). Light sweet crude has lost 34 cents to trade at $48.07 amid choppy trading.
Profound Energy (PFX.TO) has soared 81.5% as the company has agreed to be sold to Paramount Energy Trust (PMT_U.TO). For each share of Profound, shareholders will have the option of accepting $1.34 in cash; 0.394 of a PET trust unit; or a combination of cash stock.
In other corporate news, Rogers Communications (RCI.B.TO) is down 2.6%. The company said that it has appointed Nadir Mohamed as president and chief executive officer, effective immediately. Nadir replaces the company's founder, the late Ted Rogers.
In merger and acquisitions news, Gammon (GAM.TO) Tuesday said that discussions have terminated regarding the proposed acquisition of Capital Gold Corp. (CGC.TO). On the news, Gammon has added 5% while Capital Gold has plunged 20%.
Atna Resources (ATN.TO) has dropped 2.7% after the company posted fourth quarter net income of C$3.5 million or C$0.04 per basic share, compared to a net loss of C$768 thousand or C$0.01 per basic share in the previous year
Air Canada (AC-B.TO) has lost 17.4% amid a management shakeup. The company announced the resignation of Montie Brewer as President and Chief Executive Officer effective Wednesday. The company appointed Calin Rovinescu to succeed Brewer as President and Chief Executive Officer.
On the economic front, data showed Canada's real gross domestic product dropped 0.7% in January. A drop of 0.6% was forecast by analysts, compared to the 0.1% drop in December.
In other economic news, Canadian industrial product prices rose 0.4% in February, while raw materials prices rose 1.7%. Average weekly employee earnings rose 1.1% in January.
The S&P/TSX Composite Index dropped 224.84 points or 2.54% on Monday to 8,596.22. The decline was the fourth in five sessions for the index. The move mirrored that of U.S. and European stocks, which plunged on concerns over the banking and auto industries.
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