TORONTO — The Toronto stock market was a little down on Tuesday despite data showing China's manufacturing sector slowing less than thought and a better-than-expected profit at Bank of Montreal.

The S&P/TSX composite index was off 11.06 points to 12,057.3 with the market weighed down by the gold sector was bullion prices fell back after a string of record high closes.

The TSX Venture Exchange dipped 1.33 points to 1,765.43.

The Canadian dollar was up 0.31 of a cent to 101.31 cents US as investors also took in a mixed reading on Canadian retail sales.

Statistics Canada said that retail sales rose 0.7 per cent in June to $37.8 billion, a third consecutive monthly increase and a bit better than the 0.6 per cent reading that economists expected.

However, retail sales excluding the auto segment decreased 0.1 per cent. Economists had expected a rise of 0.3 per cent.

The agency said that higher sales and lower prices at new car dealers accounted for most of the 1.6 per cent increase in retail sales in volume terms.

U.S. markets advanced as the Dow Jones industrial average climbed 29.71 points to 10,884.36.

The Nasdaq composite index gained 9.18 points to 2,354.56 while the S&P 500 index edged up 0.83 of a point to 1,124.65.

The financial sector was 0.55 per cent higher after Bank of Montreal (TSX:BMO) kicked off quarterly earnings reports from the big Canadian banks. BMO turned in net income of $793 million in the three months ended July 31, up 18 per cent from the same time last year. Its adjusted net income was $843 million, or $1.36 per share, four cents higher than analyst estimates. BMO's revenue was $3.27 billion, up 13 per cent from the third quarter of fiscal 2010 and its shares climbed 51 cents to $57.86.

National Bank (TSX:NA) hands in earnings Thursday while Royal Bank (TSX:RY) reports on Friday.

Prices for oil and metals advanced following the release of HSBC's preliminary purchasing managers index for China's manufacturing sector. The index rose to 49.8 in August from 49.3 in July. Analysts said that there had been worries the reading would come in much worse.

The October crude contract on the New York Mercantile Exchange climbed 24 cents to US$84.66 a barrel after running ahead about $2 on Monday, taking the energy index up 0.74 per cent.

Canadian Natural Resources (TSX:CNQ) gained 68 cents to C$33.58 as the energy giant said its Horizon oilsands operation has resumed sales of synthetic crude, which were interrupted by a fire at the processing plant in January. It says it's ramping up production and expects to reach full capacity of 110,000 barrels per day of synthetic crude by next week.

Imperial Oil (TSX:IMO) was ahead 48 cents to $39.40.

The base metals sector rose 0.41 per cent as hopes for higher demand from China helped push the September copper contract on the Nymex up five cents to US$4.00 a pound. First Quantum Minerals (TSX:FM) lost 21 cents to C$19.85 while HudBay Minerals (TSX:HBM) rose 12 cents to $11.98.

The gold sector was down 2.2 per cent as bullion prices slipped after nervous investors pushed the precious metal into record territory for the last four sessions. The December contract in New York was down $22.90 to US$1,869 and Barrick Gold Corp. (TSX:ABX) lost $1.16 top $50.48 and Goldcorp Inc. (TSX:G) faded $1.40 to $52.25.

The news wasn't quite so positive from Europe, where economic indicators showed that failing efforts to resolve the eurozone debt crisis are cutting into economic activity and sentiment in the currency union's core.

Markit's composite purchasing managers index for the eurozone was unchanged at 51.1 in August, signalling stagnation in the manufacturing sector and hardly any growth in the services sector.

While analysts at Capital Economics had expected the index to deteriorate further from its 22-month low in July, they warned that "the index is still dangerously close to recession territory."

North American markets racked up gains Monday after the TSX and the Dow industrials both tumbled about four per cent last week on worries centred around a slowing global economy and the European government debt crisis.

But trading was volatile and expected to remain that way this week as investors await a key speech by U.S. Federal Reserve chairman Ben Bernanke during an annual economics conference in Wyoming on Friday. The Fed already pledged to maintain its super-low interest rates until at least 2013 but some economists are calling for a third round of massive bond-buying to pump money into the faltering U.S. economy.

Elsewhere in the oilpatch, PetroMagdalena Energy Inc. (TSXV:PMD) reported that it has discovered a new light-oil field with its Petirojo-1 discovery well in Colombia and its shares rose 12 cents to $1.16.

Caledonia Mining Corporation (TSX:CAL) has resolved a dispute with the Zimbabwean government over the future ownership of the company's Blanket gold mine. Under the settlement announced Tuesday, Caledonia will resubmit a new plan to sell control of the mine to black Zimbabwean owners under a national law that went into effect last year. Its shares added half a cent to 8.5 cents.

In the U.S., H.J. Heinz Co.'s fiscal first-quarter net income slipped six per cent to US$226.1 million on charges related to some productivity initiatives, but adjusted results topped expectations as revenue climbed due to strength in emerging markets. The world's largest ketchup maker also lowered its fiscal 2012 adjusted earnings outlook and its shares fell $1.33 to US$50.71 in New York.

And Swiss bank UBS AG said Tuesday it is cutting 3,500 jobs worldwide as part of an effort to save 2 billion Swiss francs annually by the end of 2013.

The Zurich-based bank declined to say how the jobs cuts will be distributed geographically. The bank currently has 65,000 employees in more than 50 countries around the world. UBS shares rose 30 cents to US$13.49.

Earlier in the day, Asian markets closed higher, tracing North American gains on Monday.

Japan's Nikkei 225 rose 1.2 per cent and Hong Kong's Hang Seng gained two per cent. South Korea's Kospi jumped 3.9 per cent.

Chinese shares advanced for the first time in six trading sessions as investors sought bargains following the release of the HSBC data.

The benchmark Shanghai Composite Index rose 1.5 per cent and the Shenzhen Composite Index added 1.8 per cent.

European markets were positive with London's FTSE index ahead 0.41 per cent, Frankfurt's DAX was up 0.92 per cent and the Paris CAC 40 gained 0.31 per cent.