Canada’s main stock index skyrocketed on Monday, with the energy sector invigorated by heavyweight Suncor Energy Inc’s hostile bid for Canadian Oil Sands Ltd, a rival and co-producer.
The S&P/TSX composite index soared 222.38 points, or 1.7%, to conclude the day at 13,562.12
The Canadian dollar gained 0.39 cents at 76.41 cents U.S.
Canada was among a dozen Pacific-rim nations that agreed to an historic pact that would cut trade barriers on items ranging from cars to rice. The Trans-Pacific Partnership, more than five years in the making, is designed to boost commerce among nations that produce 40% of global economic output.
Teck Resources Ltd. jumped 9.6% to $7.39, and First Quantum Minerals Ltd. increased 18.4% to $6.19, to lead mining shares higher. Copper for December delivery increased 1.4% in New York.
Canadian Oil Sands Ltd. surged a record 55.1% to $9.60 after Suncor Energy Inc. made an unsolicited offer to buy the company in an all-share deal for about $4.3-billion. Under terms of the offer, Canadian Oil Sands shareholders would receive a quarter of a Suncor share, worth about $8.84 a share.
MEG Energy Corp. surged 21.8% to $10.11, and Penn West Petroleum Ltd. rallied 22.4% to $1.04 as oil extended gains a second day after the number of rigs drilling in the U.S. slumped to a five-year low.
Potash Corp. of Saskatchewan Inc. increased 1.7% to $27.42 after the company walked away from its €7.85-billion proposal to acquire German fertilizer producer K+S AG. Potash Corp. said significant declines in commodity and equity markets as well as a lack of engagement from K+S management led to the decision.
ON BAYSTREET
The TSX Venture Exchange gained 4.83 points to 530.39
All but one of the 13 TSX subgroups were higher on the day, as metals and mining stocks leaped 7.5%, energy gushing 4.5%, and materials up 3%.
The lone dissenter was in health-care, slumping 2.3%.
ON WALLSTREET
U.S. stocks closed more than 1.5% higher Monday, extending Friday's surprise intraday reversal, as investors digested the implications of the jobs data on the timing of a rate hike and awaited quarterly earnings.
The Dow Jones industrial average popped 304.06 points, or 1.9%, to close out the session at 16,776.43, after briefly topping its 50-day moving average for the first time since July 21. IBM, Goldman Sachs and Caterpillar contributed the most to gains.
The S&P 500 moved higher 36.69 points, or 1.9%, to 1,988.05, to post its first five-day streak of gains this year. Industrials and energy rose more than 2.5% to lead all sectors higher.
The NASDAQ index improved 77.19 points, or 1.6%, to 4,784.96, swinging back into positive territory for 2015.
Shares of Twitter spiked more than 5.5%, attempting to top its 50-day moving average of $27.85 U.S. a share, on news the social media firm named Jack Dorsey permanent CEO.
Shares of Alphabet, the new umbrella company for Google, jumped in their first few minutes of trading Monday.
Both Class A and Class C of Alphabet shares were about 2% higher in afternoon trade. Alphabet is identical to Google from a stock market perspective.
Trian, the $13-billion U.S. activist hedge fund run by Nelson Peltz, unveiled Monday a roughly $2.5-billion U.S. investment in General Electric. The stake is the largest in Trian's history and is being described as more supportive of the firm's management than many of the fund's other positions.
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 2.06%, compared to Friday’s 1.96%. Treasury price and yields move in opposite directions.
Oil prices gained 85 cents a barrel to $46.39 U.S.
Gold prices faded $2.88 to $1,135.72 U.S. an ounce.
