12:21 PM EDT, 08/12/2024 (MT Newswires) -- The Toronto Stock Exchange is up 107 points at midday with energy and miners the biggest gainers.

The energy sector is up 2.75%. Tourmaline Oil (TOU.TO) is acquiring Crew Energy ( CWEGF ) in a deal valued at $1.3 billion. Crew is up 74% and is the second most actively traded on the Toronto Stock Exchange,, with over 7.3 million shares changing hands.

The mining sector is 1.6% higher. Osisko Mining (OR.TO), which said it is being acquired by Gold Fields in a $2.16 billion transaction, is up 63% with over 14.5 million shares being traded.

Oil prices rose early Monday on heightened Middle East tensions, even as OPEC lowered a rosy 2024 demand forecast it maintained for more than a year due to weak demand from China.

Gold moved higher even as the dollar and treasury yields climbed ahead of key U.S. economic data coming this week.

BMO Economics in its morning note, said last week's market volatility resulted in little change for the major equity indices on net by Friday. The TSX rose 0.4% while Canada bonds rallied on a friendlier easing environment for the Bank of Canada given less concern on divergence from the U.S. Fed. And, the loonie strengthened to just over $1.37 to close the week, near where it was hovering this morning.

In local economic data terms, BMO said the highlight will be July's housing figures on Thursday. It noted the regional reports suggested minimal impact from the BoC's rate cuts so far. BMO is expecting national sales to be flat-to-higher from June, leaving them 3% above year-ago levels. At the same time, it noted, rising inventories continue to put downward pressure on prices. BMO said housing activity is poised to firm in the coming months alongside additional rate relief. Still, challenging affordability and rising new home completions will help avoid a significant price rally, it added.

BMO will also be keeping an eye on wholesale trade and manufacturing sales on Thursday and Friday, respectively. The June flash estimates were both negative, and any surprises in the actuals could tilt the risks (in either direction) to StatCan's preliminary estimate for a 0.1% expansion in June GDP.

Meanwhile, nervousness about a U.S. slowdown is overdone and a recession there is not likely, says a Macquarie Capital strategist.

Viktor Shvets, Head of Global Desk Strategy at Macquarie Capital, in a note today said: "Is the economy slowing? Yes. Is recession likely? No. Is the Fed behind the curve? Yes. Does it matter? Not really, as strong fundamentals, excess capital, instantaneous repricing and an immense policy toolkit, can reverse positions quickly with limited damage. In our view, investors continue to reside in a "twilight" of no recessions but also no strong recoveries, complemented by lower rates and higher liquidity."