Source: The Canadian Press

The Toronto stock market headed for a higher open Monday as commodity prices rose amid a weaker U.S. dollar and relief that Chinese authorities refrained from raising interest rates over the weekend.

The Canadian dollar advanced against the U.S. dollar, up 0.23 of a cent to 99.3 cents US.

U.S. futures also made headway with the Dow Jones futures up 36 points to 11,380, the Nasdaq futures were ahead 4.75 points to 2,220 and the S&P 500 futures rose 3.4 points to 1,239.

Investors were concerned going into this past weekend that China would raise interest rates to deal with inflation that surged to a 28-month high of 5.1% in November. Instead, the central bank ordered another increase in banks’ capital reserves on Friday in the latest move to reduce excess liquidity.

Investors were encouraged by the outcome of China’s annual economic planning meeting, where leaders affirmed their determination to fight inflation while also keeping growth on track.

Strong economic growth in China has helped push the resource-heavy Toronto stock market up about 13% year to date as oil and metal stocks have benefited from rising demand for commodities.

On Monday, the January crude contract on the New York Mercantile Exchange rose $1.30 to US$89.09 a barrel.

Metal prices also advanced with the March copper contract on the Nymex ahead six cents to US$4.17, while the February bullion contract in New York gained $7.10 to US$1,392 an ounce.

Investors also took in some major dealmaking.

U.S. conglomerate GE is buying British oil and gas services group Wellstream Holdings PLC for 800 million pounds (US$1.3 billion) to bolster its energy unit. GE said Monday that Wellstream intends to unanimously recommend the deal to shareholders. Wellstream, which manufactures pipes for the oil and gas sector, has previously rejected two lower offers from GE and had received approaches from other unnamed suitors.

Dell said it has a deal to buy the data storage company Compellent Technologies for US$884 million. The offer price is slightly more than Dell Inc. said it would pay last week, before the companies had signed a formal agreement. Dell says it will pay US$27.75 per share for Compellent Technologies Inc., up from US$27.50.

Royal Bank of Canada (TSX:RY) is acquiring Loudoun Capital Partners, a boutique financial advisory group in Europe for an undisclosed amount.

Asian markets were all higher. The Shanghai Composite Index gained 2.9%, Japan’s Nikkei 225 stock average closed up 0.8% and South Korea’s Kospi added 0.5%.

Hong Kong’s Hang Seng index rose 0.7% and Australia’s S&P/ASX 200 inched 0.2% higher.

London’s FTSE 100 index rose 0.94%, Frankfurt’s DAX climbed 0.42% and the Paris CAC 40 gained 0.9%.