Canada's main stock index held steady over the final hour but
still ended Tuesday's session up 100 points on renewed buying,
maybe bargain buying, after strong selling pressure over recent
weeks. The renewed buying was spurred by improved global economic
forecasts from the International Monetary Fund and improved
Canadian economic forecasts from the Bank of Canada.
Among the top gainers was Bombardier Inc. (BBD-B.TO). Bombardier
gained more than 3% on reports its aircraft maintenance and
spare-parts unit may double revenue to $3 billion annually in the
next five to seven years as the planemaker expands in emerging
markets such as Russia and China.
Energy Fuels Inc. (EFR.TO) gained 20% and Denison Mines rose 17%
after they announced a letter agreement whereby EFR will acquire
all of DML's US-based mining assets in exchange for 425.441M shares
of EFR, effectively valuing the assets at $106M.
Helping sentiment for energy stocks, oil climbed to a two-week
high in New York as Spain raised more than its maximum target at a
debt auction and the International Monetary Fund bolstered its
global growth forecast.
The IMF said on Tuesday that global growth is slowly improving
as the U.S. recovery gains momentum and fears about Europe ease,
although it did add risks remain high and the situation is very
fragile. It revised upward its global growth forecast for this year
to 3.5% from 3.3% in January, and to 4.1% for 2013 from 3.9%
Closer to home, the Bank of Canada raised its growth and
inflation forecasts for this year and said the economy will return
to full capacity - the limit at which it can grow without
generating excessive inflation - in the first half of 2013 rather
than in the third quarter as it predicted in January. This started
a debate on when, rather than whether, rates will rise.