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Traders Michael Smyth, left, and Timothy Nick, centre, work at the post of specialist Patrick King on the floor of the New York Stock Exchange on Dec. 1.Richard Drew/The Associated Press

Canada stocks rose on Tuesday, after capping a sixth monthly decline in seven a day earlier, as Bank of Montreal rallied to a one-month high and Valeant Pharmaceuticals International Inc. rose for a second day.

Bank of Montreal, the nation's fourth-largest lender, added 1.4 per cent to the lead financial services equities higher after its profit exceeded analysts' estimates. Fourth-quarter profit jumped 13 per cent, led by capital markets and U.S. banking. The bank also raised its dividend 2.4 per cent.

Bank of Nova Scotia was little changed after trimming an earlier drop of more than 1 per cent, as revenue growth was short of analysts' forecasts while profit beat estimates. The firm also lowered its medium-term goal for return on equity to 14 per cent-plus from 15 per cent to 18 per cent.

Canada's largest lenders have tumbled 4.3 per cent this year, on pace for their first annual decline since 2011 amid a slowing domestic economy and slumping energy and commodities prices. Royal Bank of Canada and National Bank of Canada are scheduled to report Wednesday, followed by Canadian Imperial Bank of Commerce, Toronto-Dominion Bank and Canadian Western Bank on Dec. 3.

The Standard & Poor's/TSX Composite Index rose 166.23 points, or 1.2 per cent, to 13,636.06 in Toronto. The benchmark equity gauge retreated 0.4 per cent in November, and has dropped 7.3 per cent this year, trailed only by Singapore and Greece among developed markets.

Canada's economy grew for the first time in three quarters with a 2.3-per-cent expansion in the third quarter on gains in automotive exports and consumer spending. The quarter ended with a 0.5-per-cent monthly contraction in September, the largest since March 2009.

A combination of slowing economic growth in China and a rally in the U.S. dollar with impending interest-rate increases from the Federal Reserve as soon as Dec. 16 have crimped commodities prices this year from crude to copper. The Bloomberg Commodity Index has slumped 22 percent in 2015, the biggest drop since 2008 headed for a fifth straight annual decline.

Energy and raw-materials producers, which account for about 30 per cent of the index, have each slumped more than 20 per cent this year for the second and third-worst performing industries in the S&P/TSX behind only health-care.

Canadian Oil Sands Ltd. rose 4.3 per cent for a second day of gains. The company has another month to find other suitors willing to counter Suncor Energy Inc.'s hostile takeover offer after Alberta regulators granted an extension to Jan. 4. Suncor's bid expires Dec. 4. Suncor had said Nov. 26 it would walk away if Canadian Oil Sands was given more time to seek other bidders. Suncor rose 2.4 per cent.

Despite a 9.6-per-cent rise from Valeant Pharmaceuticals International Inc, the health care sector fell 2.1 per cent. ProMetic Life Sciences shares fell 11.3 per cent after the company said it will transition its drug to treat Type 2 diabetes to a new placebo-controlled trial.

U.S. stocks rallied to begin what has historically been the strongest month of the year for global equities, breaking out of a lull that held the Standard & Poor's 500 Index to its narrowest monthly move in six years as investors await December monetary policy decisions.

The benchmark index added less than 0.1 per cent in November as signs of a strengthening economy offset concerns of an imminent interest-rate increase. The gauge is up 2.1 per cent this year, headed toward its smallest move in four years. Health-care shares rebounded Tuesday to lead gains after erasing a November advance yesterday in the month's final session.

The S&P 500 added 1.1 per cent to 2,102.49 in New York, and closed at its highest level since Nov. 3. The Dow Jones industrial average rose 167.43 points, or 0.94 per cent, to 17,887.35,while the Nasdaq Composite added 47.64 points, or 0.93 per cent, to 5,156.31.

"There's a bit more tolerance for risk right now because indices are flat and managers have to show return somewhere -- there's only four weeks to go, and they're not doing it buying bonds," Ron Anari, the Jersey City, NJ.-based senior vice president of trading at ICAP Plc, said. "The Fed is going to hike at some point and it might as well be now. The equity markets have got it pretty much absorbed."

With policy makers assessing economic data to gauge the appropriate time to raise rates, a report today showed manufacturing activity unexpectedly contracted in November, with elevated inventories leading to cutbacks in orders and production. Investors shrugged off the setback, keeping in mind assurances from Fed officials that even if they choose to tighten this month, the pace of future rate increases will be gradual.

Traders are pricing in a 72-per-cent chance that the Federal Reserve will raise rates this month, down from 74 per cent before the factory data. Chicago Fed President Charles Evans, among the most dovish of Fed policy makers, said in remarks today he "would prefer to have more confidence than I do today that inflation is indeed beginning to head higher" before raising rates.

Fed Chair Janet Yellen will speak to Congress on Thursday on the economic outlook, and the European Central Bank will hold its last policy meeting of the year amid growing speculation it will take additional steps to boost inflation. The Fed will get its final look at the health of the labour market before its meeting in two weeks when the government releases the November jobs report on Friday.

The main U.S. equity benchmark has rebounded nearly 13 per cent from its low in August on growing confidence that the economy is sturdy enough to handle higher borrowing costs. The S&P 500 is less than 1.5 per cent away from its record reached in May, after alternating between gains and losses over the last 11 sessions, the longest such streak since 2013.

As equities rebounded from their lows earlier this year, the optimism led to fund managers increasing their allocation to global stocks last month. The timing was no coincidence: equities have wrapped up the year with gains on all but five occasions since 1988, with December seeing the biggest and most frequent increases of any month, according to data compiled by Bloomberg. The S&P 500 has posted a December advance in six of the past seven years.

For next year, strategists predict the U.S. benchmark measure will gain 6.9 per cent by December from Monday's close, according to the average estimate compiled by Bloomberg.

Oil rose in New York after its biggest monthly decline since July as OPEC ministers arrive in Vienna ahead of this week's policy meeting.

West Texas Intermediate futures climbed 0.5 per cent. Saudi Arabia will discuss all issues and listen to concerns of other members at the Friday gathering, said the nation's Oil Minister Ali al-Naimi. The Organization of Petroleum Exporting Countries pumped more than its quota in November, exceeding it for an 18th month, a Bloomberg survey showed. Gasoline advanced after the U.S. changed blending requirements for the fuel.

Oil prices have fallen almost 40 percent the past year as a record surplus persisted amid global producers' fight for market share. OPEC is meeting a year after Saudi Arabia led an agreement to keep production high and drive out higher-cost shale rivals in the U.S. Speculator short positions in WTI, bets that prices will drop, rose to the highest level since March, the U.S. Commodity Futures Trading Commission said Monday.

"We're listening to the Saudis for clues, and they're sending mixed signals," Bill O'Grady, chief market strategist at Confluence Investment Management in St. Louis, which oversees $3.4-billion, said. "The market is so short that if anything conciliatory comes out of the meeting there will be a short-covering rally."

West Texas Intermediate for January delivery rose 20 cents to settle at $41.85 a barrel on the New York Mercantile Exchange. Total volume was 15 per cent below the 100-day average. Prices decreased 11 per cent in November.

Brent for January settlement declined 17 cents to end the session at $44.44 a barrel on the London-based ICE Futures Europe exchange. It fell 10 per cent in November. The European benchmark crude closed at a $2.59 premium to WTI.

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