Canada's main stock index looked set to open higher, with investors encouraged by the formation of a coalition government in Italy that ended two months of political uncertainty in the troubled region.
The S&P/TSX index soared 62.89 points to begin a new week at 12,283.09
A proposed merger of Valeant Pharmaceuticals International Inc and Actavis Inc was put on hold after the two drugmakers failed to agree on terms of a deal that would have created a healthcare giant with a combined market value of $35 billion, a person familiar with the situation told Reuters on Saturday. Valeant shares vaulted $2.45, or 3.5%, to $76.97
Imperial Oil Ltd on Saturday said production is underway at its Kearl oil sands project in eastern Alberta, five months after the original target date for its biggest undertaking yet. Imperial stock took on 28 cents to $40.26
Kinross Gold Corp is pushing ahead with plans to expand its Tasiast project in Mauritania with a feasibility study for a 38,000-tonne-per-day mill and said it expected the initial capital cost for the project to be about $2.7 billion. Kinross Gold shares docked nine cents to $5.47.
No major Canadian economic data was due for release today.
ON BAYSTREET
The TSX Venture Exchange inched up 0.86 points to 966.08
Of the 14 Toronto subgroups, utilities faded 0.2% to start out the week, but everything else was on the move, led by a 1.5% jump in metals and mining stocks, while health-care and gold were runners-up, each gaining 1.3%.
ON WALLSTREET
U.S. stocks opened higher Monday, taking a cue from Europe, where investors cheered the formation of a new Italian government.
The Dow Jones Industrials advanced 52.60 points to kick off trading Monday at 14,765.20
The S&P 500 index added 4.61 to 1,586.85. The tech-heavy NASDAQ Composite grew 23.38 points to 3,302.65
J.C. Penney shares rose sharply after the struggling retailer officially said it had secured a $1.75-billion U.S. loan from Goldman Sachs. Shares were also boosted by a New York Post report that claimed "at least" two major hedge funds have taken significant stakes in Penney, with one's investment worth over $10 billion U.S.
In other corporate news, JPMorgan Chase announced Sunday that another of CEO Jamie Dimon's key executives, co-chief operating officer Frank Bisignano, is leaving the firm.
Earnings are still rolling in, with controversial supplements company Herbalife and gun maker Sturm Ruger set to release their quarterly results after the close
Enrico Letta was sworn in as Italy's prime minister, ending weeks of political deadlock and uncertainty in a country mired by recession.
The news pushed Italian stocks up more than 1%, while Italian bond yields dropped to their lowest levels in more than two years.
Expectations of a further rate cut from the European Central Bank and continued monetary support from the Federal Reserve later this week were also lending support.
Economically speaking, a report on U.S. personal income and spending was set for release, likewise, data on pending home sales from the National Association of Realtors
Prices on the 10-year U.S. Treasury were unchanged, keeping yields at Friday’s 1.66%.
Oil prices acquired 34 cents to $93.34 U.S. a barrel.
Gold prices shone brighter by $10 to $1,463.60 U.S. an ounce
