Equities began Monday positive as global investor sentiment improved on the prospect of a major merger in the fast-food business.
The S&P/TSX composite index was up 48.96 points to open the day and the week at 15,584.51
The Canadian dollar was down 0.08 cents at 91.11cents U.S.
Burger King is in talks to acquire the coffee and doughnut chain Tim Hortons in a deal that would create a fast food powerhouse with a market capitalization of roughly $18 billion U.S. Tim Hortons shares surged $12.59, or 18.3%, to $81.37.
A small number of water samples taken near the site of a major spill at Imperial Metals' Mount Polley mine have shown copper levels high enough to pose a risk to fish, British Columbia officials said on Friday, but the copper did not exceed drinking water guidelines. Imperial shares gained 11 cents to $9.14.
Talisman Energy said Friday it still plans to sell its oil properties in Iraq's Kurdistan region, even after its partner announced a massive oil discovery. Talisman shares took on two cents to $11.80.
CIBC raised the target price on Royal Bank of Canada to $86 from $85. RBC shares gained 36 cents to $81.16.
ON BAYSTREET
The TSX Venture Exchange gained 2.88 points to 1,008.46
All but four of the 14 Toronto subgroups were positive in the week’s first hour of trading, led far and away by consumer discretionary stocks, vaulting 1.8%, information technology, up 0.5%, and industrials, improving 0.4%.
The four laggards were weighed by gold, sliding 0.7%, while real-estate and utility issues each sagged 0.2%.
ON WALLSTREET
The S&P 500 popped to an intraday record above the milestone level of 2,000 on Monday, as U.S. stocks received a lift from merger news and advances by European markets.
The Dow Jones Industrials ballooned 96.68 points to open at 17,097.56
The S&P 500 gained 10.65 points to 1,999.05, after reaching that magic 2,000 plateau. The NASDAQ added 25.32 points to 4,563.87
Shares of Burger King Worldwide Inc., Tim Hortons Inc. and InterMune Inc. surged on deal news, while July new-home sales came in slightly below expectations, but the government upwardly revised the June figure.
Shares of InterMune Inc. soared 36% after Switzerland-based Roche Holding AG said Sunday it will pay $8.3 billion U.S. for the California biotech firm.
Shares of Ann Inc. rose 6% after activist investor Engine Capital LP called on the parent of clothing retailer Ann Taylor to sell itself.
Inspiration for Monday’s gains came in part from stronger European markets, where the Stoxx Europe 600 gained on hints of more stimulus from European Central Bank President Mario Draghi.
Draghi’s comments, which came after European markets had closed, and a speech by Federal Reserve Chairwoman Janet Yellen were brushed aside by Wall Street on Friday. Yellen stayed largely cagey about the timing of the next rate hike in the U.S.
Prices for 10-year U.S. Treasuries gained a bit of strength, lowering yields to 2.39% from Friday’s 2.40%. Treasury prices and yields move in opposite directions.
Oil prices were down 0.45 to $93.17 U.S. a barrel.
Gold prices dulled $2.40 to $1,277.80 U.S. an ounce.
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