Mar. 1, 2010 (Baystreet.ca) --
Canadian stocks opened higher Monday on encouraging economic data from both sides of the border.
The S&P/TSX composite index climbed 50.90 points to open a new week and month at 11,680.53.
While Canada's fourth quarter GDP grew at 5%, a report from U.S. revealed that consumer spending rose more than expected. Also, speculation that Greek will cut its budget deficit will likely help improve sentiment.
The prices of oil went up and gold eased. Meanwhile, copper rose to its five-week high after a massive earthquake hampered production in Chile,
It could be an active day for financial stocks amid mixed news from the major financial companies. HSBC, Europe's biggest bank, reported $7.1-billion pretax profit for 2009, missing consensus estimates for a profit of $11 billion. Meanwhile, American International Group said it will sell its insurance arm, AIA Group, to Britain's Prudential Plc for $35.50 billion.
Potash stocks may be in play after U.S based Intrepid Potash said that its fourth quarter earnings plummeted 70% on pricing.
Integrated oil company Talisman Energy signed an agreement with San Leon Energy of Poland to jointly develop the San Leon's gas shale assets in Poland.
Global mining company Rio Tinto said it will hike its stake in Ivanhoe Mines by 2.7% to 22.4% by pumping in as much as $233 million.
Telecommunications company Phonetime acquired all of the outstanding shares of Modern Digital Communications Inc., a telecom company based in Victoria, British Columbia for $202,500 and one million common shares of Phonetime.
Gold and diamond explorer Etruscan Resources posted full year 2009 net loss of $0.49 per hare, wider than $0.34 per share in the prior-year period.
In economic news, Statistics Canada reported that the country's Gross Domestic Product expanded a 5% annualized rate in the fourth quarter 2009, at a faster pace since the third quarter of 2000.
This could put pressure on the policy maker to hike interest rates. Notably, Bank of Canada is scheduled to decide on interest rates tomorrow.
The Canadian dollar gained 0.47 cents to 95.47 cents U.S.
ON BAYSTREET
All but two of the 14 TSX subgroups headed higher early Monday. Metals and mining posted the strongest growth, at 1.1%, followed by energy and industrial stocks, surging 0.7% each.
Only gold, slipping 0.5%, and health-care, off 0.1%, missed the party.
The TSX Venture Exchange picked up 0.36 points to 1,531.55, while the Nasdaq Canada index gained 3.60 points to 757.46.
ON WALLSTREET
In New York, equities were poised to open higher after AIG reached a deal to sell off its Asian unit and investors digested the latest news on personal income and spending.
The Dow Jones industrial average moved higher 51.17 points to 10,376.43. The S&P 500 index picked up 6.52 points to 1,111.01, and the Nasdaq composite added 17.27 points to 2,255.53.
On Friday, stocks ended little changed. Investors were cautious after a surprise drop in existing home sales, a surprise rise in GDP growth and AIG's worse-than-expected quarterly decline.
AIG said Monday that it had reached a definitive agreement to sell its Asian life insurance business to Britain's Prudential PLC in a deal valued at $35.5 billion U.S. The deal includes $25 billion U.S. in cash, which AIG says is the largest cash proceeds it's received from any sale during its current restructuring efforts.
Investors have plenty of economic data to mull over on Monday.
Before the bell, the U.S. Census Bureau released its monthly report on personal income and spending. The government said that spending rose 0.5% in January, even though income increased only 0.1%.
Income and spending were both expected to have risen 0.4%, according to a consensus of economist forecasts from Briefing.com.
After the open, the Census Bureau will release its monthly report on construction spending, which is expected to have slipped 0.5% in January, according to Briefing.com consensus.
Also, the Institute for Supply Management will release its manufacturing index, which is expected to edge down to 57.8 for February, compared to the 58.4 the prior month, according to the Briefing.com consensus. That would still be an indication of expansion in the sector.
Treasury prices moved down, raising the yield on the 10-year note to 3.62% from 3.61% late Friday. Treasury prices and yields move in opposite directions.
The price of a barrel of oil added 26 cents to $79.92 U.S.
Gold prices slipped three dollars to $1,116 U.S.
