RTTNews - Canadian stocks closed out the week on a high note amid positive economic news from the US and eurozone. Encouraging signs from China and weakness for the greenback helped drive resource stocks into positive territory.
The S&P/TSX Composite Index unofficially jumped ahead 130.67 points, to 10,831.18, with gauges of all but one of the major sectors closing in the green.
Energy stocks added 1.7 percent as the price of oil rose above $74 to a yearly high before leveling off.
German Chancellor Angela Merkel backed a bid from Canadian auto parts maker Magna International for General Motors Co.'s Opel unit.
Drug maker Patheon Inc. (PTI.TO) announced that Switzerland's Lonza Group has submitted a non-binding proposal to acquire all of the outstanding Restricted Voting Shares of Patheon at a price of US$3.55.
Pantheon said Patheon said the bid trumps the $2 per share hostile takeover offer from JLL Partners Inc. Pantheon shares skyrocketed 31 percent.
Elsewhere, a New Jersey court threw out a lawsuit filed by the pharmaceutical company Biovail (BVF.TO) against SAC Capital Management LLC. Biovail shares were virtually unchanged.
Celestica (CLS.TO) rose 8 percent after Citigroup increased its rating on the stock to hold from sell.
Tristar Oil and Gas (TOG.TO) added 3.3 percent after an analyst at CIBC reduced his rating on the company to sector performer.
Delphi Energy Corp. (DEE.TO) and Fairmount Energy Inc. (FMT.V), announced that they had entered into an acquisition agreement, in which the former will acquire all of the outstanding common shares of Fairmount for a consideration of approximately C$14.5 million. Delphi shares were up 5 percent.
Across the border in the US, Federal Reserve Chairman Ben Bernanke spoke in Jackson Hole, Wyoming, insisting that economic recovery is likely to be sluggish.
Meanwhile, sales of previously owned U.S. homes in July notched their fastest pace in nearly two years.
The Eurozone private sector economy showed signs of broad stabilization as the Purchasing Managers' Index hit the threshold level for August. A return to growth in manufacturing output and slowing rate of contraction in the service sector led to the stabilization.
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