Canadian markets opened higher Monday as commodities rose and data showed consumers were back out spending.
The Toronto Stock Exchange’s benchmark index, the S&P/TSX composite, was up 93.29 points, or 0.81%, to 11,556.68 in early trading.
The Canadian dollar was up just over one cent US to 94.87 cents US from its Friday close of 93.81 cents US.
On the New York Mercantile Exchange, crude oil was up 69 cents US to US$74.05 a barrel, and gold was up to US$1,115.40 an ounce from its previous close of US$1,111.50 an ounce.
Retail sales rose in October, led by the automotive and clothing sectors, as consumers continued to drive Canada’s economic recovery. Statistics Canada said Monday that sales for the month were up 0.8% to US$35.3-billion, marking the eighth gain in 10 months. The October increase was in line with economists’ forecasts.
“On the whole, this report provided a favourable scorecard on the Canadian economy . . . In terms of GDP, we expect the positive momentum in the Canadian economy to continue in October, with the economy expected to grow by 0.3% (over the previous month) following the 0.4% gain the month before,” said Millan Mulraine, economics strategist at TD Securities in a report.
Following two consecutive monthly declines, consumer confidence rose by 3.7 percentage points in December to 82.8, according to the Conference Board’s Index of Consumer Confidence. This month’s increases means that the index is 26.2 points higher than it was in January 2009.
Pedro Antunes, director of national and provincial forecast, said in a statement, “Optimism about current finances and employment in the near future increased, but sentiment deteriorated on the outlook for future finances and whether it’s a good time to make a major purchase.”
Agrium Inc. has once again extended its hostile bid deadline for U.S. fertilizer rival CF Industries Holdings Inc. to Jan. 22. The offer, US$45 cash plus one Agrium share for each CF share, remains the same. As of last Friday, the previous deadline, about 25.2 million CF shares had been tendered into the deal. Its shares were up 2% just after the bell to $63.42.
In the U.S., the Dow Jones industrial average was up 88.5 points, or 0.86%, to 10,417.39. The Nasdaq composite index was ahead 21.24 points, or 0.96%, to 2,232.93.
European markets also rose Monday. The U.K.’s FTSE 100 index rose 65.83 points, or 1.27%, to 5,262.64 at midday. Germany’s DAX advanced 49.76 points, or 0.85%, to 5,880.97, while France’s CAC added 44 points, or 1.16%, to 3,838.44.
In Asia, Japan posted a trade surplus as November exports fell 6.2% year-over-year — its slowest pace of decline in 14 months.
Japan’s Nikkei stock average finished up 41.42 points, or 0.41%, to 10,183.47, and Hong Kong’s Hang Seng index fell 227.78 points, or 1.08%, to 20,948.10.
On Friday, the S&P/TSX composite index closed down 9.66 points or 0.1%, to 11,463.4. The Dow Jones added 20.63 points, or 0.2%, to 10,328.89, and the Nasdaq composite index advanced 31.64 points, or 1.45%, to 2,211.69.
