Equities in Toronto picked up early Monday as the threat of wider conflict in Ukraine appeared to diminish.
The S&P/TSX composite index gained 36.11 points to open Monday at 15,340.35
The Canadian dollar subsided 0.02 cents to 91/83 cents U.S.
Bombardier and Japanese industrial giant Hitachi Ltd are the two frontrunners to buy Finmeccanica's rail subsidiaries. Bombardier shares were flat at $3.82.
CIBC raised the target price on Cardinal Energy to $22.50 from $19. Cardinal shares gained six cents at $18.90.
The bank also raised the target price on Callidus Capital to $25 from $23.50. Callidus shares took on 12 cents to $20.50.
On the economic beat, Statistics Canada reported this morning that foreign investors reduced their holdings of Canadian securities by $1.1 billion in June, following investment totaling $31.6 billion over the previous two months.
Meanwhile, Canadian investors added $2.0 billion of offshore investments to their portfolios in June.
ON BAYSTREET
The TSX Venture Exchange dipped 1.31 points to 994.59
All but three of the 14 Toronto subgroups began the week higher, with information technology, financials and industrials each up 0.6%.
The three laggards were health-care, down 0.8%, gold, off 0.7%, and materials, sliding 0.1%.
ON WALLSTREET
U.S. stocks built on last week’s advance, helped by waning Ukraine-Russia tensions and deal news.
The Dow Jones Industrials jumped 141.80 points to begin Monday at 16,804.71
The S&P 500 added 13.82 points to 1,968.88. The NASDAQ composite popped 34.33 points to 4,499.26.
Shares of Dollar General Corp. rose 10% after offering to buy rival Family Dollar Stores Inc. in an all-cash proposal worth $78.50 U.S. a share. That’s higher than Dollar Tree Inc.’s cash-and-stock bid in July of $74.50 U.S. a share.
Foreign ministers from Ukraine and Russia met over the weekend, and an agreement was reached over a convoy of what Russia says is humanitarian aid. However, no progress was made toward a ceasefire in Eastern Ukraine.
On the economic front, the NAHB/Wells Fargo Housing Market Index for August was to be released at 10 a.m. Eastern Time, with economists expecting a reading of 53. The week also should bring data on housing starts and consumer prices on Tuesday, as well as minutes from the last Federal Open Market Committee meeting on Wednesday.
Prices for 10-year U.S. Treasuries sagged, raising yields to 2.38% from Friday’s 2.35%. Treasury prices and yields move in opposite directions.
Oil prices slumped $1.20 to $96.17 U.S. a barrel.
Gold prices plummeted $15.80 at $1,298.70 U.S. an ounce.
