The Toronto stock market headed for a negative open Tuesday as worries about worsening economic conditions pushed commodities lower ahead of a conference call between finance ministers and central bank governors from seven of the world's most industrialized powers.
The S&P/TSX Composite Index fell 25.43 points to 11,335.77
The Canadian dollar traded this morning up 0.03 cents to 96.24 cents U.S., ahead of the Bank of Canada's scheduled interest rate announcement at 9 a.m. EDT. The central bank was widely expected to leave its key interest rate unchanged.
The wording of the last announcement in April encouraged speculation that Canada's central bank was set to start raising rates from its current 1% level later this year. But a faltering global economy and increasing worries about the euro-zone debt crisis have dampened such an outlook.
ON BAYSTREET
The S&P/TSX Composite Index fell 25.43 points, to 11,335.77
ON WALLSTREET
U.S. stocks could face another rocky session, as investors await the latest discussions on how to solve Europe's debt crisis.
Futures for the Dow Industrials eked ahead 12 points, or 0.1%, to 12,075, half an hour before the opening bell, while futures for the S&P 500 tacked on one point to 1,274. Futures for the tech-rich Nasdaq docked 9.5 points, or 0.4%, to 2,459.50.
Attention will remain focused on Europe as the Spanish banking system teeters on the edge of collapse, and Greece comes closer to a possible exit from the euro.
Spain's Treasury Minister Cristobal Montoro told a Spanish radio network early Tuesday that the country was nearly shut out of global finance markets, and that its banking system would need help from other European countries. Yields on Spain's 10-year bond crept slightly higher to 6.4%.
Credit rating agency Standard & Poor's said Monday that there is a one-in-three chance Greece will leave the euro currency union in the coming months.
European stocks were mixed in afternoon trading. The DAX in Germany slid 0.8%, while France's CAC 40 edged up 0.7%. London's stock market is closed Tuesday in celebration of the Queen's Diamond Jubilee.
Asian markets ended on a higher note. The Shanghai Composite ended up about 0.2%, while the Hang Seng in Hong Kong added 0.4% and Japan's Nikkei rose 1%.
Oil for July delivery slid 25 cents to $83.73 U.S. a barrel.
Gold futures for August delivery rose $5.80 to $1,619.70 U.S. an ounce.
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