Equities jumped at the open on Monday, with Canadian Oil Sands catapulting 46% higher on Suncor Energy Inc's hostile bid for its rival and co-producer in the country's oil sands industry.
The S&P/TSX composite index soared 156.92 points, or 1.2%, to begin the week at 13,496.66
The Canadian dollar gained 0.28 cents at 75.30 cents U.S.
Suncor Energy launched an unsolicited tender offer to buy Canadian Oil Sands Ltd in an all-stock deal valued at about $4.3 billion. Each Canadian Oil Sands shareholder will receive 0.25 Suncor shares for each share held. Including Canadian Oil Sands' debt of $2.3 billion as of June 30, the deal is valued at about $6.6 billion.
Suncor shares eased 62 cents, or 1.8%, to $34.75, while Oil Sands shares zoomed $2.89, or 46.7%, to $9.08.
Bombardier Inc. is in discussions with the Caisse de depot et placement du Quebec, which manages Quebec's public pension plans, on a deal that could inject more cash into the troubled plane and train maker, according to two sources familiar with the matter. It was not immediately clear how a potential deal would be structured.
Bombardier shares acquired a nickel, or 3.2%, to $1.60.
Power plant supplier APR Energy Plc said it was in talks to be bought out by a consortium that includes its largest shareholder, Fairfax Financial Holdings Ltd. APR said there was no certainty that any firm offer would be made by the consortium, which also includes ACON Investments LLC and Albright Capital Management LLC.
Fairfax shares gained six dollars, or 1%, to $604.50.
Potash Corp of Saskatchewan said it had withdrawn its 7.9-billion-euro offer for German potash producer K+S, citing a decline in global commodity and equity markets and a lack of engagement by K+S management.
Potash shares climbed 50 cents, or 1.9%, to $27.47.
National Bank Financial resumes coverage on Oceanagold Corp. with an outperform rating and $3.50 price target following closing of the Romarco acquisition earlier announced on July 30
Oceanagold shares forfeited a penny, or 0.5%, to $1.94.
ON BAYSTREET
The TSX Venture Exchange reacquired 1.63 points to 527.19
All but one of the 13 TSX subgroups were higher at the open, as metals and mining stocks strengthened 4.8%, with energy climbing 2.7%, and materials better by 2%.
Only health-care failed to gain, sliding 0.4%.
ON WALLSTREET
U.S. stocks traded about 1% higher Monday, attempting to extend a recent recovery from correction levels, as investors awaited earnings reports and digested implications from Friday's jobs report on the timing of a rate hike.
In the open, the NASDAQ composite swung back into positive territory for the year.
The Dow Jones industrial average flew 183.18 points, or 1.1%, to open at 16,655.55, with General Electric leading advancers and Apple and Boeing the only decliners.
The S&P 500 moved higher 20.37 points, or 1%, to 1,971.13, with energy leading 10 sectors higher.
The NASDAQ index improved 34.96 points to 4,742.74, as while Apple traded about half a percentage point lower.
All three major averages advanced to come within 10 percent of their 52-week highs, out of correction territory. The Dow and S&P remained in negative territory for the year so far.
Third-quarter earnings season kicks off later in the week with PepsiCo, Alcoa and a few other companies reporting. Earnings are expected to decline 3.9% for the S&P 500, according to Thomson Reuters.
In Monday's earnings news, The Container Store is due to report after the bell.
On the economic front, ISM non-manufacturing came in at 56.9 for September.
The ISM manufacturing report last week showed softness in the manufacturing sector.
The final Markit PMI services index for September came in at 55.1, below August's 56.1 and the lowest read since June.
Prices for 10-year U.S. Treasuries lost ground, boosting yields to 2.02%, compared to Friday’s 1.96%. Treasury price and yields move in opposite directions.
Oil prices gained $1.06 a barrel to $46.60 U.S.
Gold prices strengthened $2.90 to $1,141.50 U.S. an ounce.
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