Canadian stocks extended gains on Monday after U.S. Federal Reserve Chairman Ben Bernanke signaled the central bank’s commitment to maintaining accommodative policy to bolster the economy.
The S&P/TSX Composite Index concluded the day up 109.13 points to 12,574.79
The Canadian dollar gained 0.66 cents at 100.88 cents U.S.
Strong data from Germany, one of Canada’s biggest trading partners, also buoyed market sentiment.
The Ifo Institute’s German business climate index -- a survey of around 7,000 German firms in the manufacturing, construction, wholesale and retail sectors -- edged up to 109.8 in March from 109.7 in February, reports said Monday.
Among notable gainers in Toronto’s stock market was Yamana Gold Inc., which rose 1.5% to $16.16, while Agnico-Eagle Mines Ltd. gained 1.3% to $34.06, and Teck Resources Ltd. climbed about 2.3% to $35.95.
Shares of Blackberry-maker Research In Motion Ltd. also jumped 1.6% to $13.89.
Among energy issues, shares of Imperial Oil spiked 2.1% to $46.38, while Suncor added 0.9% to $33.10, and Canadian Natural Resources dipped 1.1% to $33.28.
ON BAYSTREET
The TSX Venture Exchange picked up 25.87 points to 1,581.39, while the Nasdaq Canada index gained 7.29 points to 418.16
All 14 Toronto subgroups were positive on the day. Industrials led the charge, up 2.2%, while information technology strengthened 1.5% and materials progressed 1.3%.
ON WALLSTREET
In New York, stocks rallied Monday, with the Dow headed for one of its best days of the year, after Fed chairman Ben Bernanke's comments on the job market gave investors reason to believe interest rates will stay low.
The Dow Jones Industrials screamed higher 160.90 points, or 1.2%, to finish the day at 13,241.60. American Express led gainers on the Dow after the company hiked its quarterly dividend payment 11% to 20 cents U.S. per share.
The Dow enjoyed its biggest one-day gain since Feb. 3, when it rose 157 points.
The S&P 500 muscled up 18.37 points to 1,415.48, while the Nasdaq leaped 54.65 points to 3,122.57
Traders said stocks are being supported by the combination of improving economic data and tacit support from the Fed. So far in 2012, the S&P 500 has gained 12%, the Dow is 7% higher and the Nasdaq is up nearly 18%.
But the gains on Monday were exaggerated by positioning ahead of the quarter's end, according to some observers
Shares of hospital operator Tenent Health Care rose 6% as the U.S. Supreme Court takes up the 2010 health care reform law this week.
Lions Gate Entertainment's stock was up 4%, after a gangbusters opening weekend for the studio's post-apocalyptic teen death-match film, "The Hunger Games".
Shares of Arena Pharmaceuticals surged after European regulators approved a marketing application for the company's weight loss drug.
BATS Global Markets, an equities and options exchange operator, gave an apology Sunday after technical glitches forced it to withdraw its initial public offering Friday.
In a speech to fellow economists, Bernanke said, "We cannot yet be sure that the recent pace of improvement in the labour market will be sustained."
He added that the Fed's "accommodative monetary policies" should help reduce high unemployment over time.
The comments reaffirm investors' expectation that the central bank will keep interest rates low for a long time, and that the Fed will act if the economy deteriorates.
In matters economic, the U.S. National Association of Realtors said its index of pending home sales eased 0.5% in February to 96.5 from 97 in January.
The decline was in line with forecasts by economists surveyed by Briefing.com.
The price on the benchmark 10-year U.S. Treasury swooned, pushing the yield up to 2.28% from 2.24% Friday. Treasury prices and yields move in opposite directions.
Oil for May delivery gained 32 cents to $107.07 U.S. a barrel.
Gold futures for April delivery fell $19.80 to $1,682.10 U.S. an ounce.
