Toronto's main stock index started off on the right foot Monday, as signs of economic contraction in Europe offset strong manufacturing data out of China.
The S&P/TSX Composite Index opened the week higher by 44.91 points to 12,437.09
The Canadian dollar backtracked 0.12 cents to 100.30 cents U.S.
Among stocks to watch soon after the opening bell, natural gas provider Encana Corp. said it will speed up commercialization of its oil and liquids-rich assets through partnerships, but the company did not say how much the deals were valued at.
ATM services provider DirectCash Payments Inc. said it has agreed to buy Australian peer Customers Ltd for about A$173 million in cash to expand its business globally.
Chinese aluminium giant Chalco stepped up its diversification, agreeing to pay $926 million for a controlling stake in Mongolian coal miner SouthGobi Resources in a deal with mining billionaire Robert Friedland's Ivanhoe Resources.
The Norwegian fertiliser maker Yara is to pay $40 million for new shares in IC Potash Group, paying a near 50% premium for a 19.9% stake to secure access to potash supplies.
Singapore-based Richard Chandler Corp, the largest shareholder in the Chinese forestry company said that it has proposed a restructuring plan for embattled Sino-Forest Corp.
ON BAYSTREET
The TSX Venture Exchange poked ahead 2.58 points to 1,568.97, while the Nasdaq Canada index gained 9.21 points to 420.57
In all, 10 of the 14 Toronto subgroups began the day positive. Materials and global base metals shared the top spot, gaining 0.9% each, while metals and mining climbed 0.8%.
The four laggards were weighed by health-care, 0.4% less hale, information technology, off 0.3%, and financials, sliding 0.2%.
ON WALLSTREET
In New York, stocks opened little changed Monday, the first trading day of April, as investors look for reasons to sustain the recent rally.
The Dow Jones Industrials stumbled 32.17 points to begin the week and month at 13,179.90.
The S&P 500 faded 0.69 points to 1,407.78, but the Nasdaq moved back 7.01 points to 3,084.56
Shares of cosmetics maker Avon Products jumped 20% after competitor Coty announced that it had offered to acquire Avon for roughly $10 billion U.S. in cash.
Coty said in a statement that it had made "extensive but unsuccessful attempts to engage Avon in discussions regarding its proposal," and therefore decided to make the offer public in order to inform Avon shareholders. Coty added that it has no intention of pursuing a hostile takeover.
Credit card processor Global Payments continued to plunge, after falling 9% Friday on news that the company had fallen victim to a data breach, potentially compromising credit and debit card information from all of the major card brands, including Visa and MasterCard
Shares of daily deals site Groupon were down more than 10% ahead, after the company announced Friday that it was revising its fourth-quarter income and sales lower due to a higher rate of customers seeking refunds.
Groupon also said its auditor had discovered a deficiency in the site's financial statement close process, which covers the steps companies go through at the end of each quarter to ensure that all of their financial transactions have been accurately recorded and reported.
Investors were also awaiting reports on manufacturing and construction spending due out at 10 a.m. Monday and hoping for a bit of positive news following a string of underwhelming reports last week.
The all-important March jobs report is due Friday, although the U.S. stock market will be closed in observance of Good Friday.
Despite weak recent reports on housing and durable goods, stocks have largely been on a tear, with the Dow and S&P 500 ending their best first quarter in over a decade last week. The Nasdaq had its best first quarter since 1991.
The gains have been driven by generally improving economic data in the United States and easing concerns about the debt crisis in Europe. Stocks have also been supported by expectations that the Federal Reserve will continue to support the economy.
On the economic slate, the March installment of the Institute for Supply Management’s Manufacturing Index is expected to come in at 53, up from 52.4 in the month prior, according to a survey of analysts by Briefing.com.
February construction spending is expected to have increased by 0.5%.
The price on the benchmark 10-year U.S. Treasury surged, driving yields down to 2.18% from Friday’s 2.22%. Treasury prices and yields move in opposite directions.
Oil for May delivery moved 69 cents lower to $102.33 U.S. a barrel.
Gold futures for April delivery fell $2.70 to $1666.50 U.S. an ounce.
