Although U.S. markets are closed Monday for the Martin Luther King Jr. holiday, Canadian investors have plenty to consider this week including an interest rate announcement from the Bank of Canada on Tuesday.

The week will also bring a slew of corporate earnings reports.

Statistics Canada is reporting that foreign investors increased their holdings of Canadian securities by $5.6 billion in November, more than doubling their acquisitions of Canadian bonds and stocks.

Foreign investors added $3.8 billion to their holdings of Canadian bonds in November, their largest investment in eight months.

Foreign investment in Canadian stocks rose by $2 billion in November, predominantly the result of new treasury shares issued by a Canadian company to acquire a foreign company. Foreign investment in outstanding shares was virtually flat in November.

StatsCan said that Canadian investors added a further $1.2 billion to their holdings of foreign stock in November, bringing to $3.2 billion their accumulation in the first 11 months of 2003.

Canadian holdings of foreign bonds were little changed for the second consecutive month.

In business news, Conrad Black has agreed to sell his stake in Hollinger Inc. to a pair of twin British tycoons for $600 million as he battles enraged shareholders who accuse him of pillaging its U.S. subsidiary.

TD Waterhouse and U.S. online broker E*Trade Financial have cancelled merger talks, saying they could not agree on terms.

Early Monday, European indexes moved up and Asian stock markets closed mostly higher, with the key index in Tokyo rising above 11,000 points for the first time in three months.

Tokyo’s Nikkei Stock Average of 225 issues rose 179.13 points, or 1.65%, to 11,036.33 points. Prices rose across the board following solid gains Friday on Wall Street, where investors hailed strong earnings from General Electric Co. and the technology sector.

In Hong Kong, the key Hang Seng Index rose 85.55 points, or 0.64%, to 13,253.31.

European stocks were higher in midday trading Monday on prospects for stronger fourth-quarter corporate earnings reports, especially in the technology and telecom sectors.

Stocks are up in Paris, underpinned by confidence in corporate earnings outlooks and a more stable dollar. The CAC40 index is 0.6% higher at 3,694.81.


In Germany, the Dax is up 1% at 4,151.29. London’s FTSE100 is up 0.8% at 4521.80.

On Friday, a recovery in gold stocks and surging tech shares propelled Toronto stocks higher on Friday. The S&P/TSX composite index closed up 98.32 points, or 1.17%, at 8,522.26.

The tech group jumped 4.62% as telecommunications

On Wall Street, the tech-heavy Nasdaq composite rose 31.38 points, or 1.49%, to 2,140.46. The broader S&P 500 rose 7.78 points to 1,139.83. The Dow Jones industrial average rose 46.66 points to 10,600.51.