July 11, 2016 - 6:30 AM EDT
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TSX Hikes on World News

Metals, Energy Gained

Equities in Canada's biggest centre rose in early trade on Monday, with broad gains helped by Japan's latest fiscal stimulus plan.

The S&P/TSX Composite climbed 125.81 points to open Monday at 14,385.65

The Canadian dollar slumped 0.35 cents to 76.34 cents U.S.

Thomson Reuters said it agreed to sell its intellectual property and science business to private equity firms Onex Corp and Baring Private Equity Asia for $3.55 billion in cash. Thomson Reuters said on Monday it would use $1 billion of the net proceeds to buy back shares, pay down debt and invest in its other businesses.

Thomson shares boosted 71 cents, or 1.3%, to $53.98, while Onex shares gained 43 cents to $79.91.

The National Energy Board said it suspended a review of Enbridge's request to extend its permit for the proposed Northern Gateway crude oil pipeline project. Enbridge had filed a request with the Canadian energy regulator in May for a three-year extension of the permit as it sought greater legal and regulatory certainty.

Enbridge shares progressed 73 cents, or 1.4%, to $54.59.

JP Morgan raises the price target Cenovus Energy to $19.00 from $18.00 as the company has an attractive, low-cost SAGD oil sands asset base, which should generate steady cash flow and lead to fairly good sustaining dividend coverage.

Cenovus shares took on 13 cents to $18.16.

Firan Technology Group is out with Q2 earnings, expecting a figure of five cents per share. Firan shares acquired five cents, or 2%, to $2.58.

Neptune Technologies & Bioressources also reports, expecting full-year earnings of four cents per share, Neptune shares picked up three cents, or 2.1%, to $1.33.

On the economic beat, Canadian Mortgage and Housing Corporation reported that the seasonally-adjusted annualized rate of housing starts in this country rose to 218,333 in June, up from a revised 186,709 in May. Economists had forecast 190,000 starts in June.


The TSX Venture Exchange gained 5.16 points to 757.28

All but one of the 13 subgroups were higher to begin the day, as metals and mining strengthened 3.9%, while consumer discretionary and energy each added 1.2%.

The lone laggard was in gold, down 0.5%.


U.S. equities traded higher on Monday as investors cheered an election in Japan and tried to extend a jobs-report rally.

The Dow Jones Industrials gained 83.21 points to 18,229.95, with Boeing leading advancers and Procter & Gamble the greatest laggard.

The S&P 500 gained 6.36 points to 2,136.09, breaking a previous intraday record set May 20, 2015. In early trade, information technology and financials lead the S&P, with utilities lagging.

The NASDAQ Composite Index marched ahead 28.32 points to 4,985.34

On deck this week is the start of earnings season, with Alcoa set to report quarterly results Monday after the close.

The U.S. Federal Reserve will also release its latest edition of the Beige Book, a summary of current economic conditions released eight times a year.

Overseas, Prime Minister Shinzo Abe's coalition notched a landslide victory for the upper house in Japan's parliament. Abe had cast the election as a referendum on his "Abenomics" recipe of hyper-easy monetary policy, spending and reform.

With signs the strategy is failing, the government plans to compile a post-election stimulus package that could exceed 10 trillion yen ($99 billion U.S).

Prices for the 10-year Treasury dipped, lowering yields to 1.39% from Friday's 1.36%. Treasury prices and yields move in opposite directions.

Oil prices dropped nine cents a barrel to $45.32 U.S.

Gold prices nosed up 80 cents to $1,359.20 U.S. an ounce.

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Source: Equities.com News (July 11, 2016 - 6:30 AM EDT)

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