(RTTNews) - Canadian stocks skyrocketed Tuesday morning as pent up buying interest following the long Thanksgiving weekend drove the S&P/TSX Composite to its biggest intraday point gain in history.

After a brutal week saw stocks plunged to their lowest levels in 4 years, Bay Street took its cue from global equities this morning, with aggressive actions on the part of policy makers worldwide fueling hopes that credit markets will stabilize.

The main index is up 1088 points at 10,153.79, led by massive gains among resurgent resource stocks.

President George Bush and his top economic officials announced Tuesday a plan to buy stakes in U.S. banks, part of a program meant to ease the strain on financial institutions and allow them to return to normal lending practices.

The Bush Administration will invest $250 billion in the banks, part of of the $700 billion authorized by the financial system rescue plan passed early this month.

Stakes will be taken in a “wide variety” of banks and thrifts, Treasury Secretary Henry Paulson said in a statement, with nine of the country’s largest financial institutions agreeing to take part in the plan.

The Financial Index is up a whopping 12 percent, led by significant gains among Canada’s big six banks.

The Energy Index has soared 15 percent. Notable gainers in the oil patch include EnCana (ECA.TO), which has surged higher by 20 percent. Oil rose back above $84 a barrel Tuesday morning as traders looked to put cash back to work.

Base metal miners are up 13 percent. Among miners on the rise, Equinox Minerals (EQN.TO) is up 38 percent, while Teck (TCK.B.TO) has rallied 21 percent.

Teck (TCK.B.TO) announced Monday that it has agreed to sell approximately 27.6 million units of Fording Canadian Coal Trust (FDG.UN.TO) to an unnamed chartered bank. Teck intends to use the proceeds of the sale to fund a portion of the cash payment in respect of Teck’s purchase of all of the assets of Fording, which is expected to close on October 30. The purchase price to be paid per Fording unit will be $83.30.

The Financial Index is up a whopping 12 percent, reflecting renewed confidence in the influential financial sector.

Buying interest has been indiscriminate all morning. Approaching 11 am ET, gauges of every major sector were in the green, with gains less pronounced among gold stocks.

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, Releases, Stocks, USA.

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