The Toronto stock market vaulted out of the blocks Monday as markets round the world anticipated a Franco-German economic master plan.
The S&P TSX Composite moved higher 168.62 points, or 1.4%, in the first hour of trading to 12,243.71
The Canadian dollar picked up 0.29 cents to 98.66 U.S. cents.
Among Canadian stocks to watch this morning, Enbridge Inc., which expects to win support for its $5.5-billion Northern Gateway oil pipeline from a majority of native communities along the proposed route based on current negotiations.
Miner Frontier Rare Earths Ltd. signed a definitive agreement to partner with Korea Resources Corp to fast-track the development of the Zandkopsdrift rare earth project in South Africa.
ON BAYSTREET
The TSX Venture Exchange grew 9.35 points to 1,566.23, while the Nasdaq Canada index increased 3.91 points to 398.14
All 14 Toronto subgroups gained ground, with metals and mining stocks leading the way, up 3.3%, global base metals adding 2.6%, and energy stocks 2.1% stronger.
ON WALLSTREET
In New York, stocks opened sharply higher Monday, as investors grew optimistic at the start of what could be a pivotal week for Europe's debt crisis.
The Dow Jones Industrials leaped 159.31 points, or 1.3%, to 12,178.70
The S&P 500 tacked on 21.58 points, to 1,265.86, while the Nasdaq Composite strengthened 45.11 points to 2,672.04
As the European debt crisis continues, leaders are expected to meet this week for yet another summit to talk about rewriting European Union treaties.
French President Nicolas Sarkozy and German Chancellor Angela Merkel met Monday morning to discuss ways to safeguard the euro by increasing economic and political "convergence."
Both euro-zone leaders said last week that a fiscal pact should be written into the European Union treaty, so that budget rules can be properly enforced through broader oversight and automatic penalties for nations that fail to comply.
On Monday, Italy's new prime minister, Mario Monti, will present a budget proposal for €30 billion ($41 billion U.S.) in new taxes and spending cuts over two years. The proposal, which includes reductions to future pensions, is aimed at ending a budget crisis that has clouded the future of Europe's common currency.
Shares of SuccessFactors Inc. surged after German software maker SAP agreed to buy the company for $3.4-billion U.S. in cash. Shares of Taleo, SuccessFactors' rival, also spiked.
Dollar General's stock edged higher after the company's quarterly profit topped expectations. The retailer also raised its guidance for the year.
Shares of Taiwanese phone maker HTC were down sharply ahead of a ruling on a key Apple patent suit. On Tuesday, a six-member panel at the International Trade Commission in Washington will rule on whether HTC's phones had violated two Apple patents.
Economically speaking, new data on factory orders and the services industry will be released Monday morning.
Factory orders for the month of October are expected to have dropped by 0.4%, following a 0.3% increase in September, according to a survey of analysts by Briefing.com.
November's Institute for Supply Management (ISM) Non-Manufacturing Index is expected to hit 53.4, up from 52.9 the previous month.
The price on the benchmark 10-year U.S. Treasury faded, pushing the yield up to 2.10% from 2.04% late Friday. Treasury prices and yields move in opposite directions.
Oil for January delivery increased $1.13 to $102.09 U.S. a barrel.
Gold futures for February delivery fell $13.30 to $1,738.00 U.S. an ounce.
