Stock markets in Toronto looked set to open higher, after sharp selloff in the previous session, although Europe's spiraling debt worries and the grim outlook for Spain might keep a lid on gains.
The S&P/TSX Composite Index docked 105.15 points to conclude Monday trading at 11,330.39. Canada stock futures traded up 0.03%.
Among stocks to watch this morning, oil whiz Nexen Inc.said it has taken less time than expected to start producing at a section in its Long Lake project in Alberta, helped by the use of new technologies to ready wells.
No major Canadian economic data is scheduled for release
ON BAYSTREET
The TSX Venture Exchange dropped 30.39 points to 1,175.64. The Nasdaq Canada index declined 11.07 points to 353.09
The Canadian dollar was up 0.07 of a cent this morning to 97.24 cents U.S.
ON WALLSTREET
U.S. stocks were poised for a higher start Tuesday, as investors keep tabs on Europe ahead of a key summit later in the week and await reports on U.S. home prices and consumer confidence.
Futures for the Dow Industrials eked up nine points to 12,440, about 30 minutes before the opening bell, while futures for the S&P 500 edged up 0.2 points to 1,306.80. Futures for the tech-rich Nasdaq added 4.50 points, or 0.2%, to 2,531.
European leaders are under pressure to devise a means of backstopping the debt of struggling nations, while also laying the groundwork for growth. Investors are skeptical that Thursday's summit will produce much of substance, and U.S. stocks fell Monday amid global growth pessimism.
Spain and its ailing banking sector remain particularly troublesome for markets. On Monday, Spain officially requested EU loans to support its banks, a number of which were later downgraded by rating agency Moody's.
Early Tuesday, Spain auctioned off more than €3 billion of short-term debt at high yields and slightly lower demand than the prior month's auction. That weighed on European stocks, which fell between 1% and 2%. The yield on the 10-year bond edged up to 6.7%, getting closer to the bailout worry zone of 7%.
The day will end with the finance ministers of France, Germany, Italy and Spain meeting in Paris ahead of this week's summit.
Investors will also be keeping an eye on bank stocks, as they were largely behind Monday's selloff. In pre-market trading, Bank of America and JPMorgan Chase were up slightly while Morgan Stanley was down.
European stocks were down in afternoon trading. Britain's FTSE 100 dropped 1%. The DAX in Germany and France's CAC 40 both fell more than 2%.
Asian markets ended mixed. The Hang Seng in Hong Kong rose 0.5%, while the Shanghai Composite fell 0.1%. Japan's Nikkei lost 0.8% after lawmakers approved a plan to double the country's sales tax.
Oil for August delivery rose seven cents to $79.28 U.S. a barrel.
Gold futures for August delivery fell $3.00 to $1,585.40 U.S. an ounce.
Related Stories
