Canadian shares flew off the shelves on Monday morning as investors set aside worries about a possible escalation in Ukraine's civil conflict after separatist rebels declared a resounding victory in a referendum on Sunday.
The S&P/TSX composite index gained 92.51 points to begin the week at 14,626.57
The Canadian dollar poked ahead 0.18 cents to 91.92 cents U.S.
U.S. medical firm Allergan Inc rejected the unsolicited takeover offer from Valeant Pharmaceuticals International Inc saying it substantially undervalued the company. Valeant shares skidded $2.27, or 1.6%, to $140.69.
National Bank Financial upped the target on Canadian Natural Resources to $53 from $48. Natural Resources shares climbed 65 cents, to 1.5%, to $43.55.
The same bank cut the target on Dundee Real Estate to $34.50 from $35.00. Units in Dundee grew 27 cents to $29.22.
ON BAYSTREET
The TSX Venture Exchange advanced 1.11 points to 992.91
All 14 Toronto subgroups were in the green during Monday’s first hour, with metals and mining strengthening 3.3%, global base metals climbing 3.1%, and materials 1.5% to the good.
ON WALLSTREET
The major indices started the week with a nice bounce, the blue-chips being propelled to another intraday high.
The Dow Jones Industrial Average screamed ahead 95.28 points to 16,678.62
The S&P 500 gained 14.32 points to 1,892.80, and the NASDAQ composite index soared 58.30 points to 4,130.17
While investors have continued pouring into the perceived safety of blue-chip companies, tech stocks have been hammered as investors fret about sky-high valuations and in some cases not-yet-proven business models.
There was also a bit of that merger Monday feeling in the air, after Hillshire Brands announced plans to acquire packaged foods company Pinnacle Foods for $6.6 billion U.S.. Shares of Pinnacle surged 15% on the news, while shares of Hillshire dropped 6%.
Investors are also on the lookout for another mega health care deal, of which there have been aplenty so far this year.
Pfizer shares rose after the company published a letter to a parliamentary committee in the United Kingdom arguing its case for its proposed $106 billion acquisition of AstraZeneca.
The chief executives of both companies will be grilled by British lawmakers Tuesday and Wednesday, reflecting high levels of public anxiety over the impact of a takeover on jobs and scientific research in the U.K.
So far the two health care giants have been unable to reach an agreement, but if completed, the deal would likely be the second biggest pharmaceutical deal after Pfizer's $112-billion U.S. purchase of Warner Lambert in 2000.
GoGo soared after the company beat earnings estimates. The in-flight internet provider reported a narrower loss compared to a year earlier and said that its revenue climbed 35%.
Ralph Lauren suffered after the iconic clothing company's stock was hit with an analyst downgrade. The stock has been sliding and is down more than 16.5% this year as it struggles to keep up with the competition.
Twitter was slowly crawling back Monday. The stock is down 15% in the past five trading sessions, a victim of the broader selloff in various tech names, but it is trading solidly above $30 U.S. again.
Prices for 10-year U.S. Treasuries stepped back, lifting yields to 2.65% from Friday’s 2.62%. Treasury prices and yields move in opposite directions
Oil prices took on 67 cents to $100.66 U.S. a barrel.
Gold prices gained $11.90 to $1,299.50 U.S. an ounce.
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