The Canadian dollar was higher against the U.S. currency Monday as risk appetite improved following the release of positive purchasing managers' data from China.
The S&P/TSX composite index rose 36.19 points to close Friday at 12,239.04.
The Canadian dollar was higher by 0.05 cents to 100.71 cents U.S. Monday morning
Meanwhile, traders looked ahead to the Canadian central bank's next scheduled interest rate announcement on Tuesday. The Bank of Canada is widely expected to keep its key interest rate unchanged at 1%, reflecting slowing economic conditions in much of the world.
The other key economic event of the week happens Friday when Statistics Canada releases its November employment report. Economists expect the economy created about 7,500 jobs last month.
The TSX Venture Exchange added 2.52 points Friday to 1,220.90
It's a new week but the same story for U.S. markets, as the focus remains squarely on the fiscal cliff negotiations in Washington.
The Dow Jones Industrials futures took on 57 points, or 0.4%, to 13,065, while S&P 500 futures improved 6.60 points, or 0.5%, to 1,421, and futures for the tech-rich Nasdaq gained 18.75 points, or 0.7%, to 2,694.50
No major corporate results are due Monday, though reports will be released in the morning on construction spending and manufacturing, as well as on November auto sales.
Among the movers in early trading, shares of computer maker Dell jumped more than 5% after Goldman Sachs upgraded its stock from sell to buy.
Shares of Yahoo edged lower after a civil court in Mexico issued a non-final judgment of $2.7 billion U.S. against Yahoo Inc. and Yahoo de Mexico, S.A. in a breach of contract lawsuit related to a yellow pages listing service.
Bank of America shares rose following reports over the weekend that the bank was backing down on instituting new fees this year that would have impacted more than 10 million customers.
Shares of BlackBerry-maker Research in Motion slipped after being downgraded to sell by Canaccord Genuity.
Fresh positive data on China's manufacturing sector gave Asian markets an early boost. But fiscal cliff fears weighed on markets in the region. The Shanghai Composite lost 1.0%, the Hang Seng declined 0.9% and Japan's Nikkei 225 posted a small gain.
European markets were higher, taking some comfort from the positive news out of China, and signs of an easing of the euro-zone crisis as Greece
Oil prices gained 62 cents a barrel in the early going to $89.53 U.S.
Gold prices picked up $6.40 an ounce to $1,719.50 U.S.