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TORONTO - The Toronto stock market registered a modest gain Tuesday amid misgivings about the effectiveness of a planned bailout for Spain's banks.

Rising mining stocks helped take the S&P/TSX composite index up 30.88 points to 11,432.66 following a 99-point loss and the TSX Venture Exchange shed 4.47 points to 1,272.24.

The TSX was also supported by a major deal for transportation giant Bombardier Inc. (TSX:BBD-B.TO - News), which could reap up to $9.6 billion from the sale of business jets and related services if all options are exercised.

One of Warren Buffett’s companies, NetJets Inc., has signed a deal to buy up to 275 Bombardier Challenger business jets that could be worth up to US$7.3 billion. Bombardier said it has also signed a 15-year service and maintenance agreement for the aircraft, worth as much as an additional US$2.3 billion if all options are exercised. Its shares jumped 24 cents or 6.58 per cent to $3.89.

The Canadian dollar was up 0.21 of a cent to 97.18 cents US .

U.S. markets were also positive with the Dow Jones industrial average up 20.78 points at 12,432.01, the Nasdaq composite index was 0.91 of a point higher at 2,810.64 and the S&P 500 index gained 0.67 of a point at 1,309.6.

Stocks, the loonie and oil prices all registered sharp declines Monday following a weekend deal to make €100 billion available to Spain to revive banks crushed by bad real estate loans. But traders worry the money will just add to the Spanish government’s already considerable debts and perhaps force it to seek its own sovereign bailout.

That investor wariness was evident on bond markets where the yield on Spain's 10-year benchmark bond shot up 0.27 of a point at 6.78 per cent. dangerously close to the seven per cent yield that has forced other countries to seek rescue loans. Italy’s yields were also rising.

There is also nervousness ahead of Sunday’s election in Greece. The worry is that a left-wing party that advocates tearing up the country’s bailout agreement will be the big winner. If that happens, Greece could end up leaving the eurozone with unpredictable consequences for other debt-laden eurozone countries such as Italy.

Oil prices were down for a fourth session as traders also closely watched a quarterly meeting of the Organization of Petroleum Exporting Countries on Thursday. Some members of the cartel have suggested recently that OPEC is producing too much crude and the group could decide to cut supplies to help boost prices. The July crude contract on the New York Mercantile Exchange slipped four cents to US$82.66 a barrel and the energy sector rose 0.23 per cent. Talisman Energy (TSX:TLM.TO - News) ran ahead 22 cents to $11.03 and Suncor Energy (TSX:SU.TO - News) rose 17 cents to $28.50.

The base metals sector was ahead 1.17 per cent as July copper edged a penny lower to US$3.34 a pound. Ivanhoe Mines (TSX:IVN.TO - News) climbed 48 cents to $10.76 and HudBay Minerals (TSX:HBM.TO - News) improved eight cents to $7.59.

August gold gained $7.60 to US$1,604.40 an ounce, pushing the gold sector up 1.43 per cent. Barrick Gold Corp. (TSX:ABX.TO - News) rose 48 cents to $40.08.

The consumer staples sector was the weakest group with Loblaw Cos. (TSX:L) down 34 cents to $32.35.

European bourses were mixed with London's FTSE 100 index ahead 0.27 per cent, Frankfurt's DAX gaining 0.5 per cent and the Paris CAC 40 down 0.65 per cent.

Earlier in the day, Asian markets responded to the gloom that had settled over Europe and the U.S. late Monday.

Japan’s Nikkei 225 index lost one per cent, South Korea’s Kospi dropped 0.7 per cent and Hong Kong’s Hang Seng was 0.4 per cent lower.

Mainland Chinese shares also lost ground, with the benchmark Shanghai Composite Index shedding 0.5 per cent and the Shenzhen Composite Index losing 0.4 per cent.

In other corporate news, Canadian agribusiness Viterra (TSX:VT.TO - News), which is on the verge of being acquired by Swiss commodities giant Glencore, says its profit rose to $67 million in the second quarter. That is more than double what it had the same time last year. Earnings came in at 18 cents a share, beating analyst forecasts by six cents. Viterra shareholders have overwhelmingly approved the $6.1-billion takeover offer but the deal still requires certain approvals in Canada and abroad. Viterra shares added two cents to $16.13.

Warren Buffett’s Berkshire Hathaway Inc. is offering to buy the mortgage division and loan portfolio of Residential Capital LLC. Residential Capital, also known as ResCap, is a subsidiary of Ally Financial Inc., the former auto lending arm of General Motors. ResCap, hobbled by soured mortgage loans, filed for bankruptcy protection in May.

Canadian Pacific Railway’s (TSX:CP.TO - News) David Raisbeck will step down as a member of its board of directors, reducing the number of directors at the company who were appointed before a proxy battle and subsequent boardroom shakeup. His resignation comes just weeks after New York-based Pershing Square Capital Management, CP’s biggest shareholder, succeeded in its months-long battle to oust Fred Green as CEO. CP shares dipped 48 cents to $73.39.