Stock markets stabilize after stormy start to year

North American markets stabilized in Tuesday trading and finished the day relatively unchanged. China boosted global sentiment after injecting an estimated $20 billion US to support its equity and currency markets, seeking to prevent a repeat of Monday's big slide.

The benchmark index in Toronto the S&P/TSX composite index was down sevenpointsto 12,920at the close of trading,while the Dow Jones industrial average ended with a gain of10points at17,159.

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West Texascrude oil futures dropped 79cents to settle at $35.97US a barrel. Despite the drop in oil prices, energy stocks rose, as did health-care stocks, telecoms and utilities. Financials were flat on the day.

The Canadian dollar fell a quarter of a cent to close at 71.48cents US.

Before the markets opened, Statistics Canada reported thatCanadian producer prices fell 0.2 per cent in November because of lower prices for precious metals likegold and silver. It was the fourth consecutive monthly drop.

Gold rose $4 an ounce on Tuesday to $1,079 US a two-week highadding to Monday's 1.3 per cent rise.

Chinese shares listed in Shanghai andShenzenendedlittle changed on Tuesday. Panic selling on Mondaysent shares diving seven per cent, sendingmost Asian, European andNorth American markets lower.

The global index rose 0.2 per cent on Tuesday, with markets in London and Frankfurt higher,though many big Asian exchangesincluding Japan, Australia and Hong Kong closed in the red.

"The price action reminds investors that the world is more connected than ever; volatility is likely here to stay, and liquidity may suffer if investor uncertainty worsens," Citi analysts toldReuters.

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