Equities in Canada’s largest market opened higher on Monday, after the United States and China struck a preliminary trade deal.
The TSX Composite Index accumulated 48.56 points to start Monday and the week at 17,051.69
The Canadian dollar gained back 0.28 cents at 76.12 cents U.S.
Cineworld will buy Cineplex for $1.65 billion U.S. in cash, making the British firm the biggest cinema operator in North America, as it looks to tackle increasing competition from online streaming services.
Cineplex shares galloped $9.94, or 41.4%, to $33.95.
Endeavour Mining and Centamin Plc have agreed to assess the feasibility of a merger, following a weekend meeting between top managers of the two companies, driving Centamin’s share price higher.
Endeavour docked 73 cents, or 2.9%, to $24.71.
RBC raised the target price on Enghouse Systems to $53.00 from $50.00. Enghouse lost a nickel in $47.85.
RBC cut the rating on MEG Energy to “sector perform” from “outperform”. MEG shares doffed 17 cents, or 2.5%, to $6.63.
CIBC raises rating on Power Corporation of Canada to “neutral” from “underperformer”. Power shares jumped 37 cents, or 1.1%, to $34.79.
On the economic slate, Statistics Canada said foreign investors acquired $11.3 billion of Canadian securities in October, mainly bonds. Meanwhile, Canadian investors increased their holdings of foreign securities by $2.0 billion, also mainly in the form of bonds.
Also, the Canadian Real Estate Association declared home sales recorded via Canadian MLS Systems inched up by 0.6% November 2019.
Notching its ninth straight monthly gain, CREA stats activity stands 20% above the six-year low reached in February 2019 but 6% to 7% below heights recorded in 2016 and 2017.
ON BAYSTREET
The TSX Venture Exchange gained 1.78 points to 540.53
Eight of the 12 subgroups gained ground, as communications climbed 0.8%, energy behaved 0.6% more energetically, and financials were richer 0.4%
The four laggards were weighed most by health-care, tumbling 1.1%, gold, off 0.8%, and consumer discretionary, sliding 0.2%.
ON WALLSTREET
Stocks hit record highs on Monday and were on pace for its fourth straight gain as a so-called phase one trade deal between China and the U.S. clears the path higher for stocks to end a banner year.
The Dow Jones Industrials leaped 180.33 points, to start the last full week before Christmas at 28.315.71
The S&P 500 gained 25.38 points from Friday’s record close to 3,194.18
The NASDAQ advanced 85.32 points, or 1%, from Friday’s all-time high to 8,820.47
Tech was the best-performing sector in the S&P 500, rising nearly 1% as Micron Technology traded 3.2% higher. Goldman Sachs propelled the Dow to an all-time high, rising 2.1%.
Monday’s gains were kept in check by a 4% drop in Boeing. Shares of the aerospace giant fell after The Wall Street Journal reported Sunday the company was nearing a decision on possibly halting or cutting production of the 737 Max.
The report follows Federal Aviation Administration chief Steve Dickson telling the media last week the 737 Max jet’s return was unlikely to be cleared until 2020.
On the economic calendar, IHS Markit services, manufacturing, and composite PMI (purchasing managers’ index) flash data for December were due Monday.
Sentiment was also lifted by strong economic data out of China. Chinese industrial production rose 6.2% in November on a year-over-year basis, topping expectations. Retail sales in China also jumped 8% last month.
The U.S. and China announced Friday they will move forward with a so-called phase one trade deal. As part of the agreement, the U.S. will roll back some levies on Chinese products and China will increase its purchases of U.S. agricultural products. Treasury Secretary Steven Mnuchin said will be inked in January.
Prices for the 10-Year U.S. Treasury gained, sharply lowering yields to 1.87% from Friday’s 1.82%. Treasury prices and yields move in opposite directions.
Oil prices added seven cents to $60.14 U.S. a barrel.
Gold prices moved higher $2.10 at $1,483.30 U.S. an ounce.