Markets opened higher Monday as gold and oil surged on as expectations of low U.S. interest rates kept the U.S. dollar weaker.
The Toronto Stock Exchange's benchmark index, the S&P/TSX composite, rose 122.84 points, or 1.06 per cent, to 11,702.17.
The Canadian dollar was up to 94.85 cents U.S. early Monday, after closing at 93.47 cents U.S. on Friday.
Gold surged to $1,169.20 U.S. an ounce after closing at $1,146.80 U.S. Friday.
The price of oil was up more than $2 U.S. to $79.60 U.S. a barrel from its previous close of $76.72 U.S..
Retail sales in Canada rose more than expected in September, the seventh increase in nine months, led by gains in the automotive sector, Statistics Canada said Monday. Sales were up one per cent during the month to $34.9 billion. Most economists had expected retail sales to rise 0.6 per cent in September, following a revised 0.6 per cent increase the previous month.
"On the whole, this was a very encouraging report, and it suggests that despite the weak labour market conditions and sluggish economy, Canadian households have continued to hold their side of the bargain," said Millan Mulraine, economics strategist at TD Securities.
Networking equipment supplier Ciena Corp. has won Nortel Networks' optical assets with a $769-million U.S. bid, confirmed by Monday morning. The bid consists of $530 million in cash and $239 million in convertible notes.
Canadian mining company First Quantum Minerals Ltd. said Monday it has agreed to buy Kiwara PLC, a London mineral exploration company, for about $260.2 million U.S. in cash and stock. Kiwara shareholders will get 0.0085 First Quantum shares and 0.375 of a pound for each share held. This implies a value of 75 pence a share, a 41.5 per cent premium on Kiwara's share price last Friday. Shares at First Quantum were up $1.11 to $76.10.
In the U.S., the Dow Jones industrial average rose 128.25 points, or 1.24 per cent, to 10,446.41 and the Nasdaq composite index gained 31.2 points, or 1.45 per cent, to 2,177.24 just after the bell.
Investors are also waiting on U.S. existing home sales due out at 10 a.m. ET, which are expected to increase about two per cent in October after surging 9.4 per cent in September.
Overseas markets were also higher as data showed the 30 economies representing the OECD expanded by 0.8 per cent quarter-over-quarter for the first time in a year. London's FTSE gained 62.85 points, or 1.19 per cent, to 5,330.55 at midday. Frankfurt's DAX increased 89.78 points, or 1.59 per cent, to 5,752.93, and the Paris CAC added 64.29 points, or 1.72 per cent, to 3,793.65.
In Asia, Hong Kong's Hang Seng index gained 315.55 points, or 1.41 per cent, to 22,771.39. Tokyo's Nikkei stock average was closed for a holiday but finished Friday down 51.79 points, or 0.54 per cent, to 9,497.68
On Friday, the S&P/TSX declined 20.97 points, or 0.18 per cent, to 11,579.33. The Dow dropped 14.28 points, or 0.14 per cent, to 10,318.16 at the close, and the Nasdaq closed at 2,146.04, falling by 10.78 points, or 0.5 per cent.
