Markets opened higher in Canada, as gold and oil prices surged on a weaker U.S. dollar.
The Toronto Stock Exchange's S&P/TSX composite index was up 56.6 points, or 0.49 per cent, to 11,526.41 in early trading.
On the New York Mercantile Exchange, crude oil was up $1.79 U.S. to $75.92 U.S. a barrel. Gold was up $25.90 U.S. to $1,115.90 U.S. an ounce.
The Canadian dollar rose 66 basis points to $95.72 cents U.S..
The U.S. dollar fell against the euro Tuesday, as European Union leaders at a meeting in Brussels urged Greece to take further steps to control its budget deficit by mid-March, according to Reuters.
In Canada, Finance Minister Jim Flaherty addressed concerns of a housing bubble early Tuesday, announcing the federal government will require all borrowers to meet standards for a five-year fixed-rate mortgage. Other rule changes unveiled affect people looking to refinance their mortgages and increases the minimum down payment for government-backed mortgage insurance on non-owner-occupied properties.
January's existing home sales data — due out later Tuesday — will only fuel the controversy surrounding Canada's housing market, according to BMO Capital Markets economist Benjamin Reitzes. "Nationally, sales likely rose 65 per cent from a year ago . . . Low interest rates continue to fuel buying, while sparse supply is juicing prices, which likely rose 20 per cent year-over-year."
Canadian manufacturing sales were up 1.6 per cent to $43 billion in December — the highest level in a year — led by the aerospace, automobile and energy sectors, Statistics Canada said Tuesday.
Calling the report "fairly good," TD Securities economics strategist Millan Mulraine wrote in a note, "with new orders rising dramatically during the month, it suggests that the positive momentum in this sector is likely to continue into January."
In the U.S., the Dow Jones industrial average rose 55.55 points, or 0.55 per cent, to 10,154.69. The Nasdaq composite index was up 6.12 points, or 0.28 per cent, to 2,183.53.
The Empire State Manufacturing Survey general business conditions index rose to 24.9 — well above the 18 expected and up from 15.9 in January.
Overseas markets were mostly higher Tuesday. U.K. inflation numbers for January rose to 3.5 per cent from a year ago, as expected — well above the Bank of England's target of two per cent.
The U.K.'s FTSE index was up 42.32 points, or 0.82 per cent, to 5,209.79 at midday. The DAX index in Germany gained 23.04 points, or 0.42 per cent, to 5,534.14 and France's CAC rose 8.73 points, or 0.24 per cent, to 3,617.95.
In Asia, Japan's fourth-quarter real GDP rose to a better-than-expected annual rate of 4.6 per cent. Government stimulus and exports were responsible for much of the growth, while consumer spending was steady.
Japan's Nikkei index was up 20.95 points, or 0.21 per cent, to 10,034.25. Hong Kong's Hang Seng index fell 22.00 points, or 0.11 per cent, to 20,268.69.
Markets in both Canada and the U.S. were closed Monday for holidays. On Friday, the S&P/TSX closed up 34.32 points, or 0.3 per cent, to 11,469.81. The Dow closed down 45.05 points, or 0.44 per cent, to 10,099.14, while the Nasdaq gained 6.12 points, or 0.28 per cent, to 2,183.53.
