Canada's resource heavy main stock index looked set to open lower on Monday, following a sharp decline in commodity prices, as investors dumped riskier assets with their focus moving back to Europe's debt crisis.
The S&P/TSX composite index subtracted 25.65 points to finish Friday at 12,383.68. Stock futures traded down 0.6%
The Canadian dollar gave back 0.55 cents Monday morning to 101.89 cents U.S.
On a day when domestic economic news is at a premium, stocks to watch include Nexen Inc. China's ambassador to Canada warned in remarks published on Saturday against letting domestic politics drive the Canadian government's decision on whether to approve Chinese state-owned CNOOC Ltd's proposed $15.1-billion takeover of Calgary-based Nexen.
Questerre Energy said any further restrictions on developing Quebec's shale gas resources are unlikely to affect the company's business plans. CEO Michael Binnion responded to the province’s natural resources minister who said last week she does not believe hydraulic fracturing or fracking is safe.
ON BAYSTREET
The TSX Venture Exchange gained 10.83 points to close at 1,345.72
ON WALLSTREET
U.S. stock futures were modestly lower Monday following a weak reading on Germany's business climate.
Futures for the Dow Jones Industrials sagged 46 points, or 0.3%, to 13,454, about 30 minutes before the opening bell. Futures for the S&P 500 fell 6.70 points, or 0.5%, to 1,445.20, and for the Nasdaq, futures ducked 16.5 points, or 0.6%, to 2,836
The report showed persistent pessimism, with Germany's business climate index falling to its lowest level since February 2010.
That weighed on the euro and European markets in midday trading. Britain's FTSE 100 was down 0.6%, the DAX in Germany fell 0.7% and France's CAC 40 dropped 1.1%. The dollar gained versus the euro.
With no major economic reports on the docket, investors are bracing for another choppy day as worries about a global growth slowdown persist. Spain remains in focus this week, with the results of bank stress tests due out Monday. The nation is slated to issue its budget Thursday.
In Asia, markets closed mixed. The Shanghai Composite gained 0.3%, the Hang Seng in Hong Kong shed 0.2% and Japan's Nikkei lost 0.5%. Investors remain concerned about a territorial dispute over islands that sit on a vast natural gas reserve.
Japanese Prime Minister Yoshihiko Noda, who recently warned the dispute could hurt China's economy, will be in New York on Monday to attend the United Nation's General Assembly.
Oil for November delivery fell $1.37 to $91.52 U.S. a barrel.
Gold futures for December delivery fell $18.50 to $1,759.50 U.S. an ounce.
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