Canadian shares seesawed between gains and losses as stronger financial stocks overshadowed a slump in miners and energy producers. The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) inched up 0.1 percent to 14,428.99 at 12:21 p.m. in Toronto. Half of the ten share groups were in the positive territory.
Financials, the index's most heavily weighted sector, edged up 0.7 percent. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, gained 1.1 percent to C$76.40. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, gained 0.7 percent to C$52.57.
The energy sector, the main index's second most heavily weighted group, slid 0.3 percent as oil, Canada’s largest export, rose more than $1.
Pacific Rubiales Energy (TSE:PRE) plummeted 39 percent to C$3.20 after suitors Alfa SAB and Harbour Energy Ltd. dropped their plans to buy the company.
Suncor Energy (TSE:SU/Suncor/" rel="4256">TSE:SU), Canada's largest oil sands producer, slipped 0.5 percent to C434.28. Enbridge (TSE:ENB), Canada's largest pipeline company, advanced 0.8 percent to C$58.76.
Front-month U.S. crude futures were up $1.31 at $52.96 a barrel by 11:09 a.m., but were still almost 8 percent lower than at the end of last week. Oil rose as supportive economic data from Germany and gasoline demand lifted prices.
The materials sub-index, which includes mining shares, surrendered 0.3 percent even as gold futures traded mostly lower.
Goldcorp (TSE:G), Canada’s largest gold miner by market value, declined 0.3 percent to C$21.24. Barrick Gold (TSE:ABX), the second-largest, declined 0.8 percent to C$13.02.
Gold for August delivery was last down 0.2 percent at $1,161.60 an ounce on Comex after hitting a lows under $1,156 overnight. Bullion dropped as investors turned much of their attention to a rally in U.S. equities.
Silver Standard Resources (TSE:SSO/Silver-Standard-Resources/" rel="4460">TSE:SSO) added 9 percent to C$7.97 after increasing its 2015 production guidance for two mines.
Sherritt International (TSE:S) dropped 5.4 percent to C$1.92 after the Canadian nickel and cobalt mining company reported finished nickel and cobalt production at the Ambatovy Joint Venture for June, which Desjardins said falls below its conservative estimate.
Kirkland Lake Gold (TSE:KGI), which explores for the metal in Canada, added 0.4 percent to C$5.15 after reporting earnings of C$19.8 million for fiscal 2015, compared with a loss of C$11.08 million a year earlier.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) rose 0.3 percent to 639.88 at 12:20 p.m. in Toronto.
In economic news, Canada’s fastest pace of multiple-unit projects in almost three years led a surprise gain in housing starts for June, another sign of what the central bank dubs a side effect of cutting interest rates in a time of record consumer debt.
In the U.S. market, shares rebounded sharply on the heels of gains in Chinese and European shares. The S&P 500 (INDEXSP:.INX) added 1.1 percent to 2,068.34 at 11:15 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) gained 1.1 percent to 17,702.71, while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) added 1.3 percent to 4,971.48. Most followed shares included Alcoa, MasterCard, Yahoo!, YY, PepsiCo, Walgreens, Costco, L Brands, ConAgra Foods, WD-40, and T-Mobile US.