Equities in Toronto advanced with higher oil prices as morning became afternoon on Monday, and as investors rushed to the battered energy sector to take advantage of appealing valuations.
The S&P/TSX composite index darted higher 219.74 points, or 1.5%, to approach midday Monday at 14,893.22
The Canadian dollar gained 0.63 cents to 79.36 cents U.S.
Shares of energy producers extended a 4.7% gain in the previous session, when the oil price began rallying off multi-year lows as some concerns about excess supply began to ease.
The strength was somewhat offset by sluggish economic data from China and a slowdown in Canadian manufacturing sector growth.
Shares of energy producers climbed as Canadian Natural Resources gained 1.5% to $37.40, and Suncor Energy advanced 1.6% to $38.50.
Canadian Oil Sands shot up 16.6% to $9.15, following a 20.6% jump on Friday, as investors cheered the company's recent aggressive moves to counter lower oil prices.
Shares in metals and mining companies plowed ahead, too, most notably Sherritt International, which advanced eight cents, or 3.7%, to $2.22.
Financials gained Bank of Nova Scotia rose 1.3% to $61.83, and Bank of Montreal was up 1.2% at $73.77.
ON BAYSTREET
The TSX Venture Exchange moved higher 3.35 points to 680.16
All but one of the 14 Toronto subgroups were higher, as energy marched ahead 3.2%, while metals and mining and industrials stocks took on 2.1% each.
Only gold stocks missed the party, sliding 1.2%.
ON WALLSTREET
U.S. stocks traded mostly higher on Monday, encouraged by firming in oil prices, and shaking off an initial decline on weaker-than-expected ISM figures.
The Dow Jones Industrials regained 58.05 points to 17,223, with Chevron the greatest gainer and Home Depot leading blue chip losses.
The S&P 500 regrouped 10.88 points to 2,005.89, with energy rising 2% to lead gains across all sectors.
The NASDAQ index emerged from below breakeven to gain 11.90 points to 4,647.14.
Exxon Mobil reported earnings that beat expectations but were lower than the year-ago quarter.
In all, 85 S&P 500-listed companies are posting quarterly results this week, along with three Dow components.
The ISM manufacturing index hit 53.5 in January, below expectations of 54.5.
U.S. consumer spending recorded its biggest decline since late 2009 in December, with households appearing to save the extra cash from cheaper gasoline, which could support future consumption.
Moreover, in a budget plan to be unveiled on Monday, U.S. President Barack Obama will call for a one-time, 14% tax on profits piled up abroad by multi-nationals, such as General Electric and Pfizer. He will also seek to impose a 19% tax on U.S. companies' future foreign earnings.
Prices for 10-year U.S. Treasuries soared, lowering yields to 1.69% from Friday’s 1.75%. Treasury prices and yields move in opposite directions.
Oil prices moved up 48 cents per barrel to $48.72 U.S.
Gold prices dwindled $6.40 an ounce to $1,272.80 U.S.
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