Toronto stocks have gained more than 1% on Monday as credit worries have eased after Abu Dhabi offered help to Dubai. Strength in the mining and energy sectors has led the way
The S&P/TSX Composite surged 121.76 points to end the week’s first session at 11,545.69
Mining stocks gained as copper moved higher on the Comex. Inmet rallied 5.2% to $64.44, Teck Resources was up 4.5% to $39.16 and First Quantum gained 2.2% to $80.75.
Energy stocks were up as EnCana has jumped 5.1% at $31.55, Canadian Natural Resources is up 2.1% to $70.22 and Suncor has gained 2.2% to $37.09.
Husky Energy gained 1.7% to $28.98 after the company announced its $3.1 billion capital expenditure program and production guidance for 2010.
Gendis declined 1.5% to $1.28 after the company reported third-quarter net income of $555,000 or $0.04 per share compared to a net loss from operations of $5.86 million or $0.41 per share last year.
Canadian Pacific gained 1.9% to $57.74 after being upgraded to "hold" from "underweight" at BB&T Capital Markets.
Meanwhile, a report from RBC Economics predicted the Canadian economy will see a rebound in 2010. Real gross domestic product is expected to rise 2.6% next year and by 3.9% in 2011, according to RBC.
Elsewhere, in economic news, Statistics Canada reported Canadian industries operated at 67.5% of their production capacity in the third quarter. This was down marginally from 67.7% in the second quarter.
The Canadian dollar was up one-10th of a cent to 94.48 cents U.S.
ON BAYSTREET
All but three of the 14 TSX subgroups ended the day higher. Metals and mining proved the strongest, up 2.9%, global base metals picked up 2.6%, followed by energy stocks, surging 2.2%.
The three losing groups were telecoms, down 2.2%, health-care stocks, down 0.2%, and information technology, off 0.1%.
The TSX Venture Exchange picked up 7.97 points to 1,425.08, while the Nasdaq Canada index was skidded 1.43 points to 692.60
ON WALLSTREET
In New York, stocks gained Monday, with the three leading indexes finishing at new 14-month highs, after Citigroup said it will repay its government bailout funds and Dubai received $10 billion U.S. to cover its debt, easing worries that the emirate might default on billions it owes.
The Dow Jones Industrials added 29.55 points to 10,501.05, while the S&P 500 gained 7.70 points to 1,114.11, and the Nasdaq gained 21.79 points to 2,212.10.
After propelling the market off of 12-year lows hit in March, the S&P 500 has risen 64% as of Friday's close.
The Dow closed at a 14-month high Friday after better-than-expected reports on retail sales and consumer sentiment, but broader gains were limited by tech weakness and a strong dollar.
Citigroup said Monday that it will return $20 billion U.S. in bailout money to the government through a combination of stock and debt offerings.
Citigroup said the bulk of the payment will be funded through a $17-billion U.S. common stock offering. The company also said Treasury will sell up to $5 billion U.S. of the $25 billion U.S. in Citigroup common stock it holds shortly, and sell the rest of it over the next year.
President Obama met Monday with top executives of some of the nation's biggest banks, including JPMorgan Chase, Bank of America and Wells Fargo
He said his main message to bankers was that banks received extraordinary assistance during the crisis, and now that the industry is back on its feet, it needs to reciprocate. He is expected to urge bankers to provide greater lending, cut back on bonuses and support financial reform efforts.
Dow component Exxon Mobil said it will buy XTO Energy in a $41-billion U.S. stock and debt deal that values XTO shares at a 25% premium to its Friday closing price. The deal also includes the assumption of $10 billion U.S. in debt.
Exxon shares fell 4% and limited any gains on the Dow. XTO shares rallied 17%.
Worries that Dubai might default on billions of dollars in debt rattled world markets at the end of last month. But some of those fears have eased over the last few weeks on signs that any fallout will be limited.
Fears were further soothed Monday after the city-state received $10 billion U.S. in financing from Abu Dhabi, another of the United Arab Emirates.
Treasury prices went up slightly, lowering yields to 3.52%, from Friday’s 3.54%. Prices and yields move in opposite directions.
The price of a barrel of oil stumbled back 14 cents to 69.73 cents U.S.
Gold prices gained four dollars to $1,124 an ounce U.S.
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