Blue chips in Toronto jumped more than 5.5 percent on Monday -- led by a rise in mining stocks -- as investors welcomed President-elect Barack Obama's plan to create jobs and revive the economy, and reports that government help for the automakers is on the way.
The S&P/TSX composite index was up 450.09 points to 8,567.12
In corporate news -- JLL Partners Inc. of New York has made a bid for the 71 percent of Patheon Inc. it does not already own, offering US$2 per share for the international drug manufacturer.
Canada Bread Co. Ltd. disclosed it has suspended the managing director of its British bakery division while it probes allegations of attempted price-fixing levied by a competitor, Mr. Bagel Ltd. The allegations follow the collapse of an attempt by Canada Bread to take over Mr. Bagel.
Northern Financial Corp. said on Friday after the bell that its take-over bid for High Desert Gold Corp. expired Friday and Northern Financial will not be extending the Offer.
On the data front -- Canadian housing starts fell to 172,000 at a seasonally adjusted annual rate last month, down from 211,800 in October, Canada Mortgage and Housing Corp. reported Monday.
The rate of urban starts decreased 21.6 percent month-over-month to 144,800 in November, with declines in all parts of the country as volatile multiple starts tumbled 29.1 percent to 81,700 while single-family starts eased 9.0 percent to 63,100.
The Canadian dollar, meanwhile, was trading 1.51 cents higher at 80.00 cents US.
BAYSTREET
All of the TSX sub-groups traded higher today -- mining stocks were up 11.01 percent followed by a 7.49 percent gain in energy issues and 6.67 percent rise in real-estate stocks.
Gold stocks gained 6.35 percent. COMEX gold for February delivery jumped $17.10 to $769.30 US an ounce.
Meanwhile, the TSX Venture Exchange rose 13.87 points to 698.18 and the NASDAQ Canada was up 14.19 points at 411.43.
ON WALLSTREET
U.S. stocks climbed Monday, with the Dow Jones Industrial Average flirting with the 9,000 level, as investors cheered President-elect Barack Obama's pledge of massive infrastructure investment and possible federal help for the auto industry.
The Dow Jones Industrial Average was gaining 300 points at 8935, and the S&P 500 was adding 30 points at 906. The Nasdaq was up 49 points at 1558.
Over the weekend, Obama outlined plans to create 2.5 million jobs by 2011 through repairing roads and bridges, modernizing schools and making public buildings more energy efficient, among other initiatives.
Additionally, the White House said a deal to help the automakers is near. Reports say a roughly $15 billion loan package could be announced later Monday.
Reports first surfaced late Friday that Congress and the White House are working on a $15 billion to $17 billion loan package for the Big Three automakers. The proposed loan is short of the $34 billion GM, Ford and Chrysler asked for last week, but would be enough to tide Detroit's automakers over until at least the end of the first quarter of next year. The idea is that this would give the new administration time to come up with a longer term solution.
News of more layoffs in the financial firms continued into the new week. Swiss newspaper SonntagsZeitung reported that UBS may cut 4,500 jobs, while a second Swiss newspaper, Sonntag, said 3,000 to 4,000 positions at UBS could be eliminated.
Dow Chemical said it will cut 5,000 full-time jobs, or around 11 percent of its workforce, close 20 plants and sell several businesses to cut back amid the recession. However, Dow shares gained 7 percent.
3M, a Dow component, cut its 2008 profit outlook and also said 2009 results won't meet estimates. Over the weekend, the company said it is cutting 1,800 staffers worldwide. Shares lost 3.8 percent.
Treasury prices slipped, raising the yield on the benchmark 10-year note to 2.71 percent from 2.70 percent late Friday. The 10-year yield dipped below 3 percent last month for the first time since the note was first issued in 1962. Treasury prices and yields move in opposite directions.
U.S. light crude oil for January delivery rallied $2.90 to $43.71 US a barrel on the New York Mercantile Exchange, after ending the previous session at a four-year low.
