Toronto's main stock index looked set to drop at Monday's open, in line with global markets, as disappointing U.S. jobs data on Friday, followed by softer-than-expected Chinese inflation data, fueled worries about the health of the global economy.
The S&P/TSX Composite Index plummeted 157.38 points, or 1.3%, to close out Friday at 11,659.65. Canada stock futures traded down 0.3%
The Canadian dollar eked up 0.03 cents to 98.01 U.S. early Monday.
Among stocks to watch this morning, Thomson Reuters Corp. : will buy FX Alliance Inc, which runs a forex trading portal, for about $625 million in cash
PetroBakken Energy Ltd. said its average production rose 10% in the second quarter and the company said it expects production growth to continue in the second half of the year, with about 75% of its planned wells yet to be drilled.
Precious metals whiz North American Palladium Ltd. said it expects commercial production at its Vezza gold mine in Quebec to be delayed and is exploring options to sell the mine.
Bombardier Aerospace said Sunday a new customer, which it did not identify, has placed a conditional order for five CS100 and 10 CS300 jetliners.
Bolivia will consider nationalizing South American Silver Corp.'s silver property, President Evo Morales said on Sunday, following violent indigenous protests against the mining project.
Teck Resources Ltd. said unionized employees at its Cardinal River mines in Alberta have ratified a five-year agreement, resulting in an after-tax charge in the third quarter.
Four potential buyers, including Prudential Plc and Manulife, have made it through to a second stage of bidding for Aviva's insurance business in Malaysia in a deal worth about $500 million.
ON BAYSTREET
The TSX Venture Exchange subsided 15.10 points to 1,206.89. The Nasdaq Canada index fell 2.43 points to 356.89.
ON WALLSTREET
U.S. stocks were poised to open lower Monday as investors remained wary ahead of quarterly corporate results and another Europe meeting.
Futures for the Dow Jones fell 47 points, or 0.4%, to 12,680, about 30 minutes before the opening bell, indicating a downward start to the trading day. Futures for the S&P 500 faded 3.6 points, or 0.3%, to 1,348.20, and for the Nasdaq, futures shaved off three points, or 0.1%, to 2,606.
Shares of health care provider Amerigroup soared 40% in premarket trading after the company announced it would be acquired by WellPoint for $4.9 billion U.S. The deal comes less than a month after last month's U.S. Supreme Court health reform decision, which will change the landscape of the country's health care system.
After the closing bell, analysts surveyed by Thomson Reuters expect Alcoa to report earnings of five cents U.S. a share, down from 32 cents U.S. a year earlier, on $5.8 billion U.S. in revenue.
The U.S. Federal Reserve will release data on consumer credit for May at 3 p.m. ET. Analysts surveyed by Briefing.com expect consumer credit to have expanded by $9.5 billion U.S. for the month, after growing by $6.5 billion U.S. in April.
Finance ministers from euro-zone countries are starting a two-day meeting Monday to try to hammer out details about how money from the European Stability Mechanism can be used to bail out troubled banks in struggling euro-zone nations.
Early Monday, the yield on the 10-year Spanish bond rose above 7% yet again -- a level that Spain's prime minister has previously called unsustainable.
Meanwhile, China's consumer price index rose at a modest 2.2% annual rate in June. The lower inflation rate serves as yet another signal of a global slowdown.
European stocks slid in midday trading. Britain's FTSE 100 shed 0.4%, the DAX in Germany fell 0.2% and France's CAC 40 slipped 0.1%.
Asian markets reacted to the U.S. jobs report and global growth concerns, ending Monday in the red. The Shanghai Composite tumbled 2.4%, while the Hang Seng in Hong Kong dropped 1.9% and Japan's Nikkei fell 1.4%.
Oil for August delivery rose 68 cents to $85.13 U.S. a barrel.
Gold futures for August delivery rose $6.50 to $1,585.40 U.S. an ounce.
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