Canadian stocks jumped with global markets on Monday, buoyed by reports of further progress in Europe’s ongoing sovereign debt crisis.
The S&P TSX Composite Index ended the day ahead 178.15 points, or 1.6%, to 11,640.21, well off its highs of the day
The Canadian dollar advanced 0.77 cents to 96.59 U.S. cents.
Among metals and mining stocks, shares of First Quantum Minerals Ltd. soared 9.5% to $18.59, with Ivanhoe Mines Ltd. shares up 4.4% to $19.87.
Gold, silver and copper prices rallied on the euro-zone optimism. Among gold plays, Barrick Gold was up 2.1% at $51.19.
Energy stocks also rose, with shares of Canadian Natural Resources Ltd. up 3.4% to $35.10. Imperial Oil shares leaped 5.2% to $41.39.
Among the few decliners, shares of Agnico-Eagle Mines Ltd. dropped 3.1% to $42.29. On Monday, Canaccord Genuity downgraded the stock to "hold" from "buy" and cut its price target, citing the negative impact from the suspension of the company’s Goldex mine.
Toronto's consumer discretionary sector edged up as Canadian Tire Corp. was among the top performers, rising 3.5% to $72.49.
ON BAYSTREET
The TSX Venture Exchange picked up 7.55 points to 1,512.69, while the Nasdaq Canada index jumped 11.55 points to 383.24.
All but one of the 14 Toronto subgroups were in the green Monday. Metals and mining strengthened 4.9%, global base metals spiked 4%, and energy stocks surged 2.4%. Health-care stocks were flat to end the session.
ON WALLSTREET
In New York, stocks posted sharp gains Monday, following reports of strong Black Friday weekend sales and amid optimism that European leaders may be working toward a solution to the continent's debt crisis. The Dow Jones Industrials sprinted 291.23 points, or 2.6%, to end the day at 11,523.
The S&P 500 grew 33.88 points, to 1,192.55, while the Nasdaq Composite gained 85.83 points to 2,527.34.
The advance broke a four-day losing streak for the Dow, and seven consecutive days of declines for the S&P 500 and Nasdaq.
The rally was broad, with all 30 Dow components gaining ground. All but a small handful of the S&P 500 and Nasdaq were also trading higher.
Financials were among the biggest winners, with Morgan Stanley, Citigroup, Goldman Sachs, and JPMorgan Chase and surging between 3% and 7%.
The mood on Wall Street was cheerful after major retailers reported record sales of $52.4 billion U.S. over Black Friday weekend -- up 16% from last year -- according to a survey by the National Retail Federation released Sunday.
Retailers like Wal-Mart, Kohl's, Costco, Target, Gap and Home Depot were up between 1% and 3%, while Best Buy, Macy's, Tiffany & Co.and Saks Inc. climbed between 3% and 7%.
Shares of Amazon jumped after the online retailer said it sold four times more Kindles during this Black Friday weekend than the same period last year.
Apple shares also rose after the retailer saw strong Black Friday sales, with reports showing that customers bought 14.8 iPads per hour, up 68% year-over-year. Customers bought 10.1 Macs per hour, up 23% from 2010.
Despite Monday's healthy rise, the major indexes remain in the red for the month and the year.
The Dow is down 3.4% in November, and 0.3% for the year. The S&P 500 and Nasdaq are off about 5% for the month and year.
Last week, European bond yields spiked following a series of disappointing debt auctions, which further heightened fears of a contagion in the region and sent stocks about 5% lower for the week.
Experts remain optimistic that European leaders and policymakers will draw up a plan before the end of the year, especially now that Germany is starting to feel the pinch of its neighbors' severe debt struggles.
Last week, Germany, Europe's largest and healthiest economy, sold only €3.6 billion of the €6-billion 10-year bunds it had hoped to auction.
On Monday, investors appeared to shrug off a warning by Moody's that the intensifying European debt crisis could lead to a downgrade of the region's sovereign debt.
While it's not new, reports about a coordinated effort to create some type of fiscal union in Europe appear to be lifting sentiment.
Meanwhile, the Organization for Economic Cooperation and Development called for policies to be put in place immediately to stop the euro-zone debt crisis from spreading.
E.U. and U.S. leaders gathered for a summit in Washington on Monday to discuss Europe's crisis, among other issues.
Economically speaking, new home sales rose 1.3% to an annual rate of 307,000 in October. Economists were expecting the annual rate to come in at 312,000.
The price on the benchmark 10-year U.S. Treasury regained strength lost earlier, with the yield falling back to Friday’s 1.96%. Treasury prices and yields move in opposite directions
Oil for January delivery perked $1.00 to $97.77 U.S. a barrel.
Gold futures for December delivery rose $25.10 to settle at $1,710.80 U.S. an ounce.
