Canada's resource-heavy benchmark index looked set to open higher on Tuesday after a long holiday weekend, buoyed by higher commodity prices and rising hopes for an European interest rate cut.
The S&P/TSX Composite Index gained 171.86 points, or 1.5%, Friday to 11,596.56. Canada stock futures traded up 0.3% Tuesday.
Markets were closed Monday for Canada Day.
The Canadian dollar gained 0.12 cents to 98.44 cents U.S. early Tuesday
Stocks to watch this morning include Bombardier Inc., which said on Saturday its aerospace arm had received firm orders worth about $507 million for eight global business aircraft.
The U.S. Justice Department is probing Chesapeake Energy Corp and Encana Corporation for possible collusion after a Reuters report showed that top executives of the two rivals plotted in 2010 to avoid bidding against each other in Michigan land deals
The U.S. pipeline regulator on Monday slapped a $3.7-million fine, the largest penalty ever imposed, on Enbridge Inc, for a July 2010 crude oil spill which contaminated stretches of the Kalamzoo River in Michigan.
San Gold Corp. restarted milling operations Sunday at its Rice Lake Mining complex in Manitoba after a near month-long suspension due to a mechanical failure.
ON BAYSTREET
The TSX Venture Exchange jumped 27.14 points Friday, or 2.3%, to 1,191.61. The Nasdaq Canada index subtracted 1.20 points to 355.43
ON WALLSTREET
U.S. stocks pointed to a flat open Tuesday, with traders not expecting much market movement in the shortened trading day.
Futures for the Dow Industrials edged down one point to 12,775, about 30 minutes before the opening bell, while futures for the S&P 500 gained 0.9 points to 1,358.50. Futures for the tech-rich Nasdaq improved five points, or 0.2%, to 2,619.20
Many investment professionals are taking the week off. U.S. markets will close at 1 p.m. ET on Tuesday, and remain dark Wednesday to celebrate Independence Day.
Monday was a choppy day for investors, after several disappointing manufacturing reports. In the United States, the Institute for Supply Management said its June Purchasing Manufacturers Index fell to 49.7, down from 53.5 in May. It was the first time the index fell below 50, which signals expansion in the sector, since July 2009.
Meanwhile, manufacturing activity in the euro area continued to decline in June, while the region's unemployment rose to a record high. The Chinese government's report of manufacturing activity declined slightly, but remained above the level indicating expansion.
European stocks were higher in afternoon trading. Britain's FTSE 100 added 0.3%, the DAX in Germany jumped 0.7% and France's CAC 40 gained 0.3%.
Asian markets ended higher. The Shanghai Composite closed up 0.1%, the Hang Seng in Hong Kong rose 1.5% and Japan's Nikkei edged higher 0.7%.
Oil for August delivery rose $1.57 to $85.32 U.S. a barrel.
Gold futures for August delivery gained $11.30 to $1,609 U.S. an ounce.
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