Markets in Toronto opened higher on Monday to begin the final quarter of the year. Investors were undoubtedly hoping for aggressive action from central banks the world over after economic data from Asia and Europe showed further signs of slowing growth.
The S&P/TSX composite index grew 121.93 points, or 1%, to begin day, week, month and quarter at 12,439.39
The Canadian dollar strengthened 0.18 Monday morning to 101.81 cents U.S.
In company news, Bombardier Inc. reported having won a contract worth about 50 million euros to supply five double-deck trains to German Deutsche Bahn AG. Shares the train-building giant acquired a dime to open at $3.79.
Auto parts giant Magna International Inc, said it will buy Germany-based ixetic Verwaltungs GmbH for about 308 million euros to expand its engine and transmission pumps business. Magna shares gained 89 cents, or 2.1%, to $43.40.
Moreover, Keyera Corp plans to invest $210 million to boost recoveries of ethane and other high-margin natural gas liquids at a gas plant in west central Alberta. Keyera shares began the week on the right note, climbing 71 cents to $48.35.
On the economic slate, Statistics Canada said its Industrial Product Price Index edged down 0.1% in August from July, due mostly to lower prices for motor vehicles and other transportation equipment.
The agency’s Raw Materials Price Index rose 3.4% in August, mostly because of higher prices for mineral fuels, specifically crude oil.
ON BAYSTREET
The TSX Venture Exchange climbed 12.13 points to 1,346.64
All but one of the 14 Toronto subgroups gained ground at the outset, led by the metals and mining group, ahead 1.6%, while global base metals and materials took on 1.4% each.
Only a 0.1% loss by information technology stocks spoiled the party.
ON WALLSTREET
U.S. stocks took on strength at Monday’s open, as Wall Street took its cue from European markets.
The Dow Jones Industrial average leaped 143.80 points, or 1.1%, to start the session at 13,580.90
The S&P 500 regained 7.42 points to 1,448.09, while the tech-rich Nasdaq added 28.13 points to 3,144.36
U.S. stocks ended the third quarter on a downward note Friday. But year-to-date, the Dow Jones, S&P and Nasdaq are all up between 10% to 20%.
Shares of Ceradyne surged 43% after 3M announced it would buy the ceramic components maker for $860 million U.S.
Nokia shares gained ground on news the mobile phone maker signed a mapping service deal with Oracle
The prospects of a huge consolidation in the international mining industry looked brighter, after Xstrata's board of directors said it was backing a revised offer from Glencore International. The merger was first proposed in February, but had been delayed by shareholder objections.
Spain passed two major hurdles last week when it proposed its 2013 budget and results from bank stress tests were in line with expectations. The good news caused European stocks to perk Monday noon.
The American economic calendar shows the Institute for Supply Management releasing its manufacturing Index for September this morning. It is expected to tick up to 49.7 from 49.6 in the month prior, according to a survey of analysts by Briefing.com.
As well, the U.S. Census Bureau will release data on construction spending
All eyes will be on the labour market this week, with figures about private sector job growth from paycheque processing firm ADP and weekly initial jobless claims setting the stage for Friday's all-important monthly jobs report from the U.S. Labor Department.
The price on the benchmark 10-year U.S. Treasury gained, lowering yields to 1.62% from Friday’s 1.64%. Treasury prices and yields move in opposite directions.
Oil prices took on 55 cents to $92.74 U.S. a barrel.
Gold futures for December delivery shone brighter by $14.30 to $1,790.40 U.S. an ounce.
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