Canadian stocks snapped a three-day loss to end higher on Monday, tracking rising global equity markets and driven by solid gains in health care and mining stocks, although gains were limited by declining gold stocks with commodity prices slipping.
Global markets rallied to end higher on bargain hunting, following weakness of the prior trading week.
Markets in Europe ended in positive territory at the start of the new trading week, after eurozone economic sentiment topped expectations. Investors are also optimistic for a resolution to the situation in Greece. Athens will present a list of economic reform proposals to international creditors today after Prime Minister Alexis Tsipras' earlier reform plans met resistance from European Union leaders.
Markets in the United States ended firmly in the green with bargain hunting contributing to the strength on Wall Street, as traders look to pick up stocks at reduced levels following last week's pullback. A series of M&A deals are also providing a boost to investor sentiment.
The Health Care Index gained 7.08 percent, with Catamaran Corp. (CCT.TO) surging 24.72 percent after agreeing to be acquired by by OptumRx for $61.50 per share in cash or $12.8 billion. OptumRx is UnitedHealth Group's free-standing pharmacy care services business.
Among other health care stocks, Valeant Pharmaceuticals International (VRX.TO) gained 3.67 percent and Extendicare Inc. (EXE.TO) dropped 0.94 percent.
In economic news from the U.S., personal income increased slightly more than expected in February, although personal spending rose by less than anticipated. Meanwhile, pending home sales in the U.S. increased much more than expected in February, with pending sales jumping to their highest level in twenty months.
The benchmark S&P/TSX Composite Index closed Monday at 14,908.39, up 95.97 points or 0.67 percent. The index scaled an intraday high of 14,994.95 and a low of 14,855.40.
On Friday, the index closed down 57.38 points or 0.39 percent, at 14,812.42. The index scaled an intraday high of 14,897.78 and a low of 14,717.68.
Crude oil ended lower amid renewed expectations of a nuclear deal with Iran which could see easing of sanctions against Tehran.
The Energy Index gained 0.66 percent, with U.S. crude oil futures for May delivery, the most actively traded contract, shedding $0.19 or 0.4 percent to settle at $48.87 a barrel on the New York Mercantile Exchange Monday.
Among energy stocks, Canadian Oil Sands Limited (COS.TO) dipped 0.10 percent, Suncor Energy Inc. (SU.TO) moved up 0.66 percent, and Canadian Natural Resources Limited (CNQ.TO) gained 4.06 percent.
Crescent Point Energy Corp. (CPG.TO) slipped 0.03 percent, while Cenovus Energy Inc. (CVE.TO) also shed 0.03 percent.
Encana Corp. (ECA.TO) gained 0.94 percent, while Pacific Rubiales Energy Corp. (PRE.TO) added 2.63 a share.
The Diversified Metals & Mining Index jumped 4.02 percent, as First Quantum Minerals Ltd. (FM.TO) gained 3.04 percent, Lundin Mining Corp. (LUN.TO) added 2.99 percent, and Teck Resources Limited (TCK-B.TO) surged 11.39 percent.
Gold futures ended lower as the dollar strengthened against a basket of major currencies and global equity markets climbed as investors opted for the riskier assets after some dovish comments from the Fed Chief Janet Yellen.
The Gold Index dropped 1.21 percent, with gold for April delivery shedding $15.40 or 1.3 percent to settle at $1,185.30 an ounce on the New York Mercantile Exchange Monday.
Among gold stocks, Kinross Gold Corp (K.TO) shed 2.36 percent, Eldorado Gold Corp. (ELD.TO) fell 3.76 percent, Barrick Gold Corp. (ABX.TO) dropped 0.56 percent, and Yamana Gold Inc. (YRI.TO) dived 2.08 percent.
The Capped Materials Index moved up 0.35 percent, as Potash Corp. of Saskatchewan Inc. (POT.TO) gained 1.98 percent and Agrium Inc. (AGU.TO) advanced 1.31 percent.
The heavyweight Financial Index added 0.14 percent, with Bank of Nova Scotia (BNS.TO) up 0.63 percent and Bank of Montreal (BMO.TO) dropping 0.20 percent.
National Bank of Canada (NA.TO) dipped 0.50 percent, while Toronto-Dominion Bank (TD.TO) fell 0.41 percent. Canadian Imperial Bank of Commerce (CM.TO) inched up 0.08 percent, while Royal Bank of Canada (RY.TO) gained 0.07 percent.
The Capped Industrials Index ended flat, as Bombardier Inc. (BBD.B.TO) shed 4.00 percent after signing a 10-year contract with National Express Group, to provide maintenance for the new Essex Thameside franchise. Air Canada (AC.TO) dipped 0.71 percent, on news its AC624 flight crashed on a runway at Halifax Stanfield International Airport in Nova Scotia. The company announced that 23 passengers and crew sustained non-life threatening injuries and were transported to local hospitals.
The Information Technology Index shed 0.38 percent, as BlackBerry (BB.TO) slumped 6.29 percent.
Sierra Wireless, Inc. (SW.TO) dropped 0.76 percent, while Descartes Systems Group Inc. (DSG.TO) gained 1.39 percent.
The Capped Telecommunication Index inched down 0.01 percent, with Rogers Communications Inc. (RCI.B.TO) down 0.80 percent, BCE Inc. (BCE.TO) up 0.30 percent, and TELUS Corp. (T.TO) up 0.45 percent.
Amaya Inc., a technology company, gained 8.28 percent after an agreement with AGS LLC to sell its Cadillac Jack Inc. electronic gaming unit for C$476 million or $376 million.
On the economic front, the Canadian industrial product price index climbed 1.8 percent in February, a report from Statistics Canada Monday said. Economists expected an increase of 0.5 percent. This was the first increase in the index in six months.
In economic news from the U.S., personal income increased while personal spending rose less than anticipated in February. Personal income climbed 0.4 percent in February, matching the upwardly revised increase seen in January. Economists expected a rise of 0.3 percent, which would have matched the growth originally reported for the previous month.
The report also showed that personal spending in the U.S., inched up 0.1 percent in February after dipping 0.2 percent in January. Spending had been expected to edge up by 0.2 percent.
Pending home sales in the U.S. increased much more than expected in February, with pending sales jumping to their highest level in twenty months, a report from the National Association of Realtors showed Monday. NAR's pending home sales index surged 3.1 percent to 106.9 in February after climbing 1.2 percent to a slightly downwardly revised 103.7 in January. Economists expected the index to edge up by 0.3 percent.
Elsewhere, eurozone economic sentiment rose for the fourth successive month to its highest level in nearly four years as lower oil prices, weak euro and measures of the central bank boosted confidence among firms and consumers, a survey by the European Commission showed Monday. The economic sentiment index climbed to 103.9 from 102.3 in February, which was revised from 102.1. Economists expected a score of 103. This was the strongest reading since July 2011, when it was 104.
Germany's consumer prices increased for the second straight month in March, preliminary data from the statistical office Destatis showed Monday. Consumer prices rose 0.3 percent from last year after increasing 0.1 percent in February. The annual increase came in line with expectations.
The U.K. mortgage approvals rose to a 6-month high in February, the Bank of England reported Monday. The number of mortgages approved for house purchases rose to 61,760 in February from 60,707 in January. This was the highest since August and above the expected level of 61,000.
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