North American stocks rose on Tuesday, with U.S. markets inching forward and Toronto’s benchmark surging ahead to catch up to gains recorded on the holiday Monday.
“The main driver for the rebound is that many markets have become deeply oversold and appear to be merely staging a normal corrective bounce within a larger downswing,” said Colin Cieszynski, analyst with CMC Markets Canada.
“Remember that June is one of the weakest months of the year for stocks and that bulls may have difficulty sustaining anything with next month’s Greek election and EU growth summit overhanging sentiment,” he added.
In Toronto, the S&P/TSX jumped 175.32 points to 11455.96. In New York, the S&P 500 edged up 4.2 points to 1,320.2 points and the Dow Jones industrial average added 1.96 points to 12,506.44 points.
Tuesday’s gains follow a 1.6 per cent bump for the S&P 500 on Monday, which was a holiday in Canada.
Overseas markets also posted a broad rally on Tuesday as investors seemed to have received a jolt of confidence from news that Germany and France will work to keep Greece within the euro zone and that China is taking steps to spur its economic growth.
Among the most active stocks, Suncor Energy rose 3 per cent and Kinross Gold advanced 4 per cent. Bank of America rose 3 per cent and JP Morgan Chase & Co. climbed 4 per cent.
Facebook shares continued their slide Tuesday, falling another 7 per cent in the opening minutes after tumbling 11 per cent on Monday. The latest selloff follows a Reuters report that underwriters cut their revenue forecasts for the social networking site shortly before the IPO.
Shares of Google Inc. dipped 1 per cent after the company said it had completed its $12.5-billion deal to buy handset maker Motorola Mobility.
U.S. Treasury notes decreased in price, with the yield rising to 1.79 per cent, up from 1.74 per cent on Monday.
The price of oil decreased by 33 cents (U.S.) to $92.24, after Iran agreed to let Western nuclear inspectors into the country.
The Canadian dollar rose a fraction to 98.4 cents (U.S.).