North American markets joined their global peers in a bullish start to the trading day Tuesday, with the Dow up 110 points and the TSX gaining about 145 on open.
After markets eked out small gains following a mostly down day of trading Monday, investors were cheered by a positive outlook for commodities and hope of Chinese intervention to bolster its economy.
Here is a look at what the markets were doing just after the opening bell on Tuesday, January 10:
The Dow Jones gained 110.35 points, or 0.89%, to 12,503.04
The S&P 500 gained 13.93 points, or 1.09%, to 1,294.63
The Nasdaq gained 31.57 points, or 1.18%, to 2,708.03
The S&P/TSX gained 144.40 points, or 1.18%, to 12,341.12
Alcoa Inc.’s results, reported after the closing bell on Monday, beat expectations despite showing a quarterly loss and the company’s chairman and CEO predicted a 7% increase in global demand for aluminum this year.
Investors decided they could get on board with that, taking the report as a sign of an improved outlook for commodities.
Markets even took news that China’s exports and imports grew at their slowest pace in two years in December in a stride, as it prompted hope of intervention from Beijing to support the country’s economy.
European markets gained, led by mining stocks, with the FTSEurofirst 300 benchmark index up 1.8% by midday.
Commodities picked up 1.2% in early trade and the loonie was up more than 1% to US$0.9838 by 8:15 a.m. after finishing Monday at US$0.9776.
Crude futures gained 1.72% to US$103.05 a barrel in New York while gold futures were up 1.85% to US$1,637.80 an ounce and copper was also up more than 2.5%.
However, Philips Electronics, Europe’s biggest consumer electronics maker, dampened the mood with a warning on its fourth quarter profits due to weakness in its European markets.
Meanwhile, Fitch Ratings says Italy faces a “significant chance” of a downgrade as the agency reviews its credit ratings on European sovereigns, with a decision expected by the end of the month.
In Japan, Olympus Corp. is suing its president along with 18 other executives for up to US$47-million in compensation over one of the country’s worst accounting scandals.
In domestic news, Canadian housing starts for the month of December came in at an annualized rate of 200,200 units, well above consensus estimates of 185,000 starts, and Corus Entertainment reported a profit rise and hiked its dividend.
Lululemon shares jumped more than 10% in early trade on the Nasdaq after the yoga wear retailer released an upwardly revised outlook for its fourth quarter-profit following better-than-expected holiday sales.
As hearings on the Northern Gateway pipeline begin in Kitimat, British Columbia, the Financial Post’s Western business columnist Claudia Cattaneo reports on the Haisla Nation’s opposition to the project.
Finally, as Mark Carney takes the stage at his first press conference of the new year as head of the Financial Stability Board Tuesday, he is expected to face questions on the resignation of Swiss central banker Philipp Hildebrand. Forced to bow out after his wife’s currency trades were made public, Mr. Hildebrand was also Mr. Carney’s second in command at the FSB.
For more morning commentary, check out our regular “Before the markets open” feature