Canada's resource heavy index charged from the gates on Monday, as U.S. lawmakers agreed on settling policy differences to avert the impending ‘fiscal cliff' crisis.
The S&P/TSX Composite Index moved higher by 134.72 points, or 1.1%, to begin the week at 12,012.44
The Canadian dollar hiked 0.44 to 100.39 cents U.S.
In the U.S., Republican and Democratic congressional leaders emerged from a meeting with President Barack Obama on Friday pledging to find common ground on taxes and spending that would allow them to avert an upcoming "fiscal cliff" that could send the economy back into recession.
Hundreds of people who say they worry oil that would be carried by the Keystone XL pipeline will accelerate climate change marched around the White House on Sunday, hoping to revive a movement credited with slowing down the permit process for the crude oil project.
On a day when no major Canadian macroeconomic data is set for release, Jana Partners LLC said it intends to propose its managing partner, Barry Rosenstein, and four independent directors to the board of Agrium Inc., whose stock soared $1.59 to $99.40
Less than five months into the appointment of a hard-driving chief executive, industry laggard Canadian Pacific Railway Ltd is already showing signs of a turnaround, and investors have piled into the stock. CP shares gained 82 cents to $91.02 early Monday.
ON BAYSTREET
The TSX Venture Exchange climbed 12.01 points to 1,247.35
All 14 Toronto subgroups were positive in the first hour, led by energy, ahead 1.8%, materials, picking up 1.7%, and the metals and mining group, up 1.6%.
ON WALLSTREET
U.S. stocks opened sharply higher Monday as investors started the holiday-shortened week optimistic that fiscal cliff negotiations in Washington are progressing.
The Dow Jones Industrials began Monday up 140.76 points, or 1.1%, to 12,729.10, with financial stocks Bank of America and JPMorgan Chase leading the way.
The S&P 500 grew 20.43 points to 1,380.31, and the Nasdaq Composite Index gained 38.06 points to 2,891.20
Gains, however, may be tempered by tensions building in the Middle East between Israel and Palestinian group Hamas. Oil prices have been ticking up amid growing concern about a possible ground war in Gaza.
Shares of Intel were halted in early trading after the company said CEO Paul Otellini will retire in May. The board of directors will conduct a search for his successor.
Shares of Lowe's gained ground after the home improvement retailer reported better-than-expected earnings of 40 cents a share on sales of $12.1 billion U.S.
Nokia shares jumped on reports that its Lumia 920 sold out in Germany, and shares of Best Buy jumped on a report that the retailer might consider a lower buyout bid from founder Richard Schulze.
Economically speaking, the National Association of Realtors will release data on existing home sales for October this morning.
The price on the benchmark 10-year U.S. Treasury fell sharply, lifting yields to 1.62% from Thursday’s 1.57%. Treasury prices and yields move in opposite directions.
Oil prices jumped $1.86 to $88.78 U.S. a barrel.
Gold prices added $15.40 an ounce to $1,730.10 U.S.
