Valeant, Resource Stocks Fuel Bay Street Rally -- Canadian Commentary

(RTTNews) - Canadian stocks rallied Monday amid widespread gains in most sectors, with strength most pronounced among commodities producers and health care.

The S&P/TSX Composite Index was up 93.84 points, or 0.69 percent, at 13,623.01.

Beleagured drug maker Valeant (VRX.TO) rebounded by 8 percent as a short-sellers latest report offered no new allegations of wrongdoing.

Energy stocks gained 1.8 percent as crude oil prices steadied, wile metals stocks picked up 1.6 percent.

IAMGOLD (IMG.TO) crept into positive territory after it announced that it has agreed to acquire a 50% interest in the Monster Lake project for $3.22 million in cash.

Canadian Imperial Bank of Commerce (CM.TO) was flat. The company says there is no merit to the lawsuit filed on Oct. 30, 2015 by a special purpose vehicle controlled by Cerberus Capital Management.

Royal Bank of Canada has completed its $5-billion (U.S.) acquisition of Los Angeles-based City National Corp. Shares were down fractionally.

ProMetic Life Sciences (PLI.TO) named Gregory Weaver CFO.

On the economic front, China's manufacturing sector continued to contract in October but at the slowest pace in four months, survey results published by Caixin and Markit Economics showed Monday. The manufacturing Purchasing Managers' Index rose to 48.3 in October from 47.2 in September. Nonetheless, it was below the expected neutral level of 50.

Eurozone manufacturing activity growth exceeded initial estimate in October, final data published by Markit showed Monday. The Purchasing Managers' Index for the manufacturing sector rose to 52.3 in October from 52 in September. The reading was above the flash score of 52.

Germany's manufacturing sector grew at the slowest pace in three months in October, final data from Markit showed Monday. Nonetheless, the pace of growth exceeded initial estimate. The headline factory Purchasing Managers' Index slid to 52.1 in October from 52.3 in September as production and employment growth slowed. The reading was above the flash score of 51.6.

The French manufacturing sector logged a slight growth in October, final data published by Markit showed Monday. The manufacturing Purchasing Managers' Index remained unchanged at 50.6 in October. It was slightly below the flash score of 50.7.

British manufacturing activity expanded at the fastest pace in sixteen months in October, as output and new order growth accelerated, figures from the Chartered Institute of Procurement & Supply and Markit Economics showed Monday.

The seasonally adjusted Purchasing Managers' Index, or PMI, climbed notably to 55.5 in October from 51.8 in September, which was revised down from 51.5. Economists had expected the index to fall slightly to 51.3.