TSX, Dow Jones edge higher

Stock markets in Toronto and New York shrugged off bad news about the U.S. housing industry Tuesday, ending a session of see-saw trading in positive territory.

Toronto's S&P/TSX composite index closed up 40 points at 8,835. In New York, the Dow Jones gained 151 points while the Nasdaq edged up one point.

The markets had swung into negative territory after a U.S homebuilders association survey found that confidence in a quick housing market recovery is at an all-time low.

The National Association of Home Builders/Wells Fargo housing market index tumbled another five points to nine in November. A reading above 50 indicates positive sentiment, a level not seen since May 2006.

Earlier in the day, markets in Europe edged slightly higher while Asian markets slipped:

London's FTSE 100 closed up 1.85 per cent. France's CAC 40 rose 1.11 per cent. Germany's Dax gained 0.49 per cent. Tokyo's the Nikkei 225 lost 2.28 per cent. Hong Kong's Hang Seng index fell 4.45 per cent.

The Canadian dollar lost 0.44 of a cent, closing at 81.31 cents US.

The TSX energy sector rose 0.5 per cent as light sweet crude closed below $55 US a barrel after hitting a new 22-month low earlier in the day.