(RTTNews) - Canadian stocks are playing catch-up to other global equities on Tuesday as Bay Street re-opened for business following the long Thanksgiving weekend.

It was anything but a quiet holiday on Monday as Canadian watched markets around the world surge higher as investors cheered coordinated efforts by policy makers designed to bolster floundering banks and restore order to the financial system.

Coming off the worst week in the history of the Canadian market, the S&P/TSX Composite Index has skyrocketed 1107.31 points, or 11 percent, to 10,140.21. With the historic advance, the main index moved away from Friday’s 4-year closing low.

However, US stocks were unable to hold onto this morning’s gains after Monday’s historic rally, signaling that Canadian stocks are likely to level off over the course of the day.

Stocks became especially cheap last week as panicked traders indiscriminately sold off stocks on fears that the world was on the verge of a major economic slowdown. While traders since have expressed some confidence that central bankers and politicians can help prevent a global recession, credit markets continue to function abnormally and data points released later this week are expected to reveal global economies are seriously distressed.

Back on Bay Street Tuesday, energy stocks have jumped 17 percent, even with the price oil paring early gains and moving back toward $81 a barrel. Among major winners in the oil patch, Suncor (SU.TO) and EnCana (ECA.TO) are up 18 percent.

Miners are clinging to their dramatic early gains as base metal prices snapped back from last week’s dramatic losses. The Diversified Metals and Mining Index is up 14 percent, led by Equinox Minerals (EQN.TO).

Meanwhile, financials have pushed ahead 13 percent, with traders expressing hope that Canada’s big six banks can emerge from the credit crisis in better shape than those of other nations. Thus far, the credit meltdown has not claimed any of Canada’s big banks, and none are in serious danger of the type of collapses seen in the US and Europe over the past few months.

Along with Bank of Montreal (BMO.TO) and Scotiabank (BNS.TO), insurers Sun Life Financial (SLF.TO) and Manulife (MFC.TO) are up more than 14 percent.

Almost halfway through today’s session, gauges of all major sectors are up more than 3 percent.

Canadian new motor vehicle sales fell for a third straight month in August, slipping 2.3 percent due to declining sales of passenger cars, according to data released by Statistics Canada Tuesday morning in New York.

Dealerships sold 137,937 new motor vehicles in August, down from 141,196 in July. 143,840 new motor vehicles was sold in August 2007.

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Posted in Categories: Canada, Eurozone, Releases, Stocks, USA.

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