Toronto's main stock index rose on Monday, to run its winning streak to seven straight sessions, as higher gold prices pushed up heavyweight gold miners. Bullion was near its highest level since mid-November after Federal Reserve Chair Ben Bernanke hinted on Sunday at further monetary policy easing.
The S&P TSX Composite Index surged 97.06 points to close at 13,276.01. The seven-day streak of advances is the longest in three months.
The loonie faded 0.21 cents to 99.46 cents U.S.
Barrick Gold rose 1.9% to $55.25 while Goldcorp also climbed 1.9% to $48.16. Agnico Eagle, also a major gold producer, advanced 3.1% to $87.91.
The index's energy group inched higher, helped by independent oil producer Canadian Natural Resources, which was up 2.6% at $42.95.
Research In Motion, which climbed 1.7% to $63.85, helped lift the tech group higher.
In individual company news, the Bank of Nova Scotia, which announced it is acquiring Uruguay's number-four private bank, rose 0.9% to $56.12.
Economically speaking, Canadian building permits declined in October, as single-family projects declined for the sixth time in the last seven months, government figures showed.
The total value of permits issued by municipalities decreased 6.5% to $6.16 billion Statistics Canada said today in Ottawa. Economists predicted a 4% decrease based on the median of 13 responses to a Bloomberg News survey.
Meanwhile, Canadian investors are awaiting the last interest rate policy announcement of the year from Canada’s central bank on Tuesday.
Economists expect that Bank of Canada governor Mark Carney isn’t going to increase interest. In these sensitive times, as economic and job growth stall, few see any reason to raise the rates at the central bank’s next meeting.
Analysts say the big question is when to raise rates.
ON BAYSTREET
The TSX/Venture Exchange advanced 17.80 points to 2,127.73, while the Nasdaq Canada index gained 8.59 points to 779.44
In Toronto, all but two of the 14 subgroups were higher. Metals and mining stocks led the parade, gaining 2.2%, while information technology and materials each put on 2%.
The two laggards were health-care issues, 1.1% off, and financials, fading 0.4%.
ON WALLSTREET
In New York, precious metals like gold and silver took center stage Monday as few investors showed a willingness to jump into the stock market fray on a day with no major economic news on tap.
The Dow Jones Industrials reversed 19.90 points to close at 11,362.20
The S&P 500 settled 1.59 points to 1,223.12. The Nasdaq Composite Index actually gained 3.46 points to 2,594.92.
Stock trading volume was lower than average. Major indexes ended mixed after drifting around breakeven for most of the day. Stocks were reacting to Fed chairman Ben Bernanke's pessimistic outlook about the nation's economy.
Commodities -- especially energy and metals -- surged as stocks drifted. Oil prices are hovering at two-year highs, while silver hit a 30-year record high.
Bernanke, in an interview on CBS' "60 Minutes" that aired Sunday, said it could be four or five years before the economy is back to a normal unemployment rate. He also said fears of inflation are overstated, and that the central bank could resort to another round of stimulus by buying up Treasuries.
Shares of Sprint jumped 7.4% after the company said it will start phasing out the Nextel part of its network, known for its push-to-talk phones, in 2013.
Drugmaker Pfizer announced a management shake-up, replacing CEO Jeffrey Kindler with Ian Read, who had been heading the company's global biopharmaceutical operations. Pfizer shares rose almost 0.9% in late trade.
AOL is exploring a break-up of the online services company that could lead to a merger with Yahoo, according to a Reuters report citing sources close to the plans. Shares of Yahoo were up 0.1%, while AOL's stock gained 1.1%.
Kellogg Chief Executive David Mackay announced that he plans to retire as president effective Jan. 1. The company named chief operating officer John Bryant to succeed Mackay.
A key shareholder of Borders, hedge fund manager William Ackman of Pershing Square Capital Management, said he is ready to finance a takeover bid for Barnes & Noble for $16 U.S. per share, according to a regulatory filing. The news sent shares of Borders soaring 32% higher, while Barnes and Noble's stock gained 10.1%.
Kellogg Chief Executive David Mackay announced that he plans to retire as president effective Jan. 1. The company named chief operating officer John Bryant to succeed Mackay.
The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 2.94%. Treasury prices and yields move in opposite directions.
Oil picked up another $1.14 a barrel to $89.14 U.S.
Gold futures for February delivery rose $9.90 -- or 0.7% -- to settle at a record $1,416.10 U.S. an ounce. Earlier in the session, the precious metal reached a fresh intraday high of $1,421.20 U.S. an ounce.
