North American markets finished higher Monday, as investors reacted to downward pressure on the price of oil and the announcement of corporate mergers and acquisitions.

The S&P/TSX composite index was up 39.86, or 0.39%, to close 10,217.72.

Volume on the senior exchange was 178 million shares.

Seven of the 10 TSX main groups were up, with the materials sector, gaining 1.61%, leading the way. The energy sector was off 0.27%

The benchmark August contract for gold finished $2.50 higher at US$426.30 an ounce.

Kinross Gold Corp. gained 32¢, or 4.31%, to finish $7.74, while Bema Gold rose 3¢, or 1.08%, to close $2.82.

Crude oil for August delivery ended down 71¢ at US$58.92 a barrel, off an intra-day low of US$58.02.

First Calgary Petroleum fell 62¢, or 8.5%, to close $6.67, while EnCana dropped 70¢, or 1.32%, to finish $52.30.

The junior S&P/TSX Venture composite index finished down 4.11, or 0.24%, to end 1,727.88.

The Canadian dollar extended its three-month highs on Monday, ahead of tomorrow’s decision on interest rates by the Bank of Canada.

The currency finished at US82.20¢, up from US82.01¢ at Friday’s close.

The loonie also got a boost from strong housing starts. Canada Mortgage and Housing Corp. said today that builders were producing homes at an annual rate of 237,200 units, up 7.2% from 221,300 units in May.

In New York, the blue chip Dow Jones industrial average gained 70.58, or 0.68%, to close 10,519.72; the tech heavy Nasdaq composite index advanced 22.55, or 1.07%, to close 2,135.43; and the broad based S&P 500 lifted 7.58, or 0.63%, to 1,219.44.

Unocal Corp., which is the target of a takeover bid by CNOOC, is selling its Canadian subsidiary, Northrock Resources Ltd., to Pogo Producing Co. for US$1.8 billion. Unocal rose 23¢ to close at US$65.97, while Pogo Producing eased 1.2%, or 68¢, to US$54.10.

General Electric Co. and Caisse de Depot et Placement du Quebec are buying U.S. natural gas pipeline system Southern Star from American International Group Inc. for US$829 millio, including debt.

GE shares ended up 0.3% while AIG shares climbed 0.8% in New York markets.