Toronto markets to go higher on rising commodities, numerous deals - InfoNews

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Toronto markets to go higher on rising commodities, numerous deals

The TMX centre's display board in Toronto on May 16, 2011. THE CANADIAN PRESS/Frank Gunn
January 14, 2013 - 6:09 AM

TORONTO - The Toronto stock market angled for a higher open on Monday as oil and gold prices advanced alongside several big deals in Canada's mining sector.

The Canadian dollar dropped 0.14 of a cent to 101.44 cents US.

Oil prices rose 23 cents to $93.79 for the February crude contract on the New York Mercantile Exchange.

Gold prices lifted with the February contract moving up $12.60 to US$1,673.20 an ounce.

Uranium One Inc. (TSX:UUU) is supporting a $1.3-billion offer from a Russian company known as ARMZ, which wants to take the Canadian company private. ARMZ already owns 51.4 per cent of Uranium One's stock.

Switzerland's Swatch Group has reached an agreement to buy Harry Winston Diamond's (TSX:HW) retail jewelry and watch division for US$1 billion in cash and assumed debt. The Toronto-based company says the deal will position to pursue mining opportunities as Dominion Diamond Corp.

Alamos Gold Inc. (TSX:AGI) is making a takeover bid for Aurizon Mines Ltd. (TSX:ARZ) that values the Vancouver-based company at $780 million, or $4.65 per Aurizon share in cash and stock. Aurizon's board has yet to make a public comment on the proposal. Aurizon's AMEX-listed shares were up nearly 29 per cent in pre-open trading.

On Wall Street, Dow futures are up 6 points to 13,439. The broader Standard & Poor's 500 futures are up 1 point to 1,468. Nasdaq futures are down 10 points to 2,734.

Federal Reserve chairman Ben Bernanke is expected to speak in a question-and-answer session at 4 p.m. ET, just as the stock markets close.

Apple Inc. shares took a dip on reports that the company has reduced orders for parts of the iPhone 5 after sales fell short of expectations in the current quarter.

In Europe, Germany's DAX rose 0.4 per cent to 7,748 while the CAC-40 in France was 0.4 per cent higher at 3,720. Britain's FTSE 100 index was flat at 6,122.

Markets have been helped by expectations that figures on Friday will show China's economy gaining traction following a period of relative weakness. China reported last week a rise in exports and imports, a sign of higher demand both inside and outside the country. More signs of improvement are expected when China releases a slew of data on Friday, including factory output, investment and retail sales.

Hong Kong's Hang Seng rose 0.6 per cent to 23,413.26. South Korea's Kospi added 0.3 per cent to 2,002.77 and Australia's S&P/ASX 200 advanced 0.2 per cent to 4,719.70. Japan's financial markets were closed for a public holiday.

News from © The Canadian Press, 2013
The Canadian Press

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