The Toronto stock market moved slightly higher at the open as traders dealt with heightened political uncertainty caused by worries over whether a new Italian government will follow through on necessary financial reforms to deal with its huge debt.
The initial results of the Italian election showed the centre-left coalition led by Pier Luigi Bersani appears to have won a narrow victory in the lower house of parliament while the Senate looks split with no party in control.
The S&P/TSX composite index edged up 8.55 points to 12,659.42 while the Canadian dollar advanced 0.21 of a cent to 97.52 cents US.
U.S. indexes were higher amid a strong earnings report from Home Depot and positive news from the housing sector showing prices continuing to rise.
The Dow Jones industrials were up 75.65 points to 13,859.82, the Nasdaq composite index gained 9.07 points to 3,125.32 and the S&P 500 index climbed 7.06 points to 1,494.91.