Canada’s main stock index inched toward record highs on Monday as oil prices rebounded from a seven-day losing streak, although gains were capped by concerns around slowing global economic growth.
The TSX Composite Index gained 61.95 points at the outset Monday to $20,400.97
The Canadian dollar added 0.64 cents to 78.61 cents U.S.
On a day without macroeconomic figures on which to dwell, Pfizer said it would buy shares of Trillium Therapeutics that it does not already own in a deal that values the cancer drugs developer at $2.26 billion.
Pfizer rocketed $1.89, or 3.9%, in New York, to $50.69, while Trillium shares exploded $14.56, or 186.4%, to $22.37.
Brookfield Infrastructure Partners has won enough shareholder backing to push ahead with its $8.6-billion takeover of Inter Pipeline Ltd, Bloomberg News reported on Friday.
Brookfield shares docked 52 cents to $70.83, while Inter shares lost 20 cents to $23.37.
TD Securities raises the rating on Airboss of America to buy from hold. Airboss shares doffed 73 cents, or 1.9%, to $38.79.
Credit Suisse raised the target price on Hydro One to $33 from $32. Hydro shares let loose 17 cents to $31.64.
JP Morgan cut the rating on TC Energy to neutral from overweight. TC shares grabbed 33 cents to $59.08.
ON BAYSTREET
The TSX Venture Exchange jumped 13.91 points, or 1.6%, to 878.52.
The 12 TSX subgroups were evenly divided, with health-care screaming higher 5.6%, energy rumbling 3.4% higher and materials 1.4% stronger.
The half-dozen laggards were weighed most by consumer staples, down 1%, utilities, off 0.9%, and real-estate, sliding 0.5%.
ON WALLSTREET
Stocks were higher in early trading Monday following a volatile week on Wall Street as investors eye a key event where the Federal Reserve could hint at prospects for tapering stimulus.
The Dow Jones Industrials jumped 234.57 points to 35,354.65.
The S&P 500 zoomed 37.52 points to 4,479.19.
The NASDAQ Composite 170.67 points, or 1.2%, to 14,886.09.
For the month of August, major benchmarks are poised to post modest gains. The S&P 500 is up 1.1% month to date, while the blue-chip Dow has gained 0.5% and the NASDAQ has climbed 0.3%.
Shares of vaccine makers are trading higher after the Food and Drug Administration granted full approval for the two-dose Pfizer-BioNTech vaccine on Monday, the first licensing of a vaccine for COVID-19.
Pfizer shares are up 3.7%. Its partner BioNTech’s stock jumped 9% and Moderna is 5% higher. Trillium Therapeutics is soaring on news that it’ll be acquired by Pfizer. Its shares are up 188%.
Traders are eagerly awaiting the Jackson Hole symposium for clues on the Fed’s timeline for dialing back its $120 billion a month bond-buying program. The event takes place virtually on Thursday and Friday.
The Fed previously was going to conduct the event in a mixed virtual and live presentation, but decided Friday to go all virtual in light of the rising virus risk.
Chairman Jerome Powell’s speech will be titled “The Economic Outlook,” which “may suggest the speech could have a more near-term focus,” Nomura economist Aichi Amemiya said in a note.
Prices for 10-Year Treasurys were unchanged, keeping yields at Friday’s 1.26%.
Oil prices recovered $3.06 to $65.20 U.S. a barrel.
Gold prices leaped $17.70 to $1,801.70 U.S. an ounce.