By David Friend, The Canadian Press
TORONTO - The Toronto stock market leapt higher Monday morning with strength across nearly all major sectors.
The S&P/TSX composite index was up 127.10 points to 13,795.30 after ending last week with a 116-point jump on Friday to its highest level since late February, when weakness in financial shares yanked the index down.
The Canadian dollar dipped 0.02 of a cent to 99.11 cents US.
Financials were back into the spotlight Monday as speculation south of the border suggested that Washington Mutual Inc. will get a US$5-billion investment from private equity firms.
On Wall Street, the Dow Jones industrials were up 69.69 points to 12,679 as investors responded to hopes for Washington Mutual, hard hit by losses tied to subprime mortgages.
The Nasdaq composite index gained 11.51 points to 2,382.49 while the S&P 500 added 7.58 to 1,377.98.
The TSX Venture Exchange moved up 14.57 points to 2,547.12.
On the TSX, mining and metals were the leaders with Fording Canadian Coal Trust (TSX: FDG-UN.TO) up 8.6 per cent, or $5.04, to $62.74.
The energy sector was ahead 1.5 per cent and commodities were up as last week's feeble American employment data increased the likelihood of further U.S. interest rate cuts, which would tend to reduce the value of the American dollar in which most commodities are valued.
The May crude contract on the New York Mercantile Exchange climbed $1.96 to US$108.19 a barrel.
Suncor Energy (TSX: SU.TO) moved up $2.28 to $105.27 on the TSX.
First Calgary Petroleums Ltd. (TSX: FCP.TO) intends to seek a delay in its special meeting set for Tuesday, according to dissident shareholder Waterford Finance & Investment. Waterford said First Calgary made the decision after learning that more than half of the share proxies were voted in favour of shaking up the board and removing CEO Richard Anderson.
Stock investors were looking at a move by Swiss pharmaceutical maker Novartis AG to spend about US$38 billion in a two-stage bid for a majority stake in American eye-care company Alcon Inc.
Microsoft Corp. has given Yahoo Inc. a three-week deadline to agree to a takeover, or Microsoft will launch a proxy fight for control. Yahoo said Monday the deal isn't in the best interests of its shareholders, and called the proxy threat counterproductive.
First-quarter earnings season begins after the close when Alcoa Inc., traditionally the first big American company to release results, discloses its quarterly financials.
Overseas, Japan's Nikkei stock average rose 1.2 per cent, or 157 points, and the Hong Kong Hang Seng added 1.3 per cent, or 314 points.
The FTSE 100 was up 47.4 points to 5,994.5 in the afternoon in London, while Germany's DAX rose 47.4 points to 5,994.5 and the Paris CAC-40 advanced 50.19 points 4,951.07.
