Markets in Toronto looked set to open higher on Monday to begin the final quarter of the year, with investors hoping for aggressive action from central banks after economic data from Asia and Europe showed further signs of slowing growth.
The S&P/TSX composite index dipped 21.39 points to end Friday at 12,317.46, with futures up 0.3%.
The Canadian dollar strengthened 0.16 Monday morning to 101.78 cents U.S.
In company news, Bombardier Inc. reported having won a contract worth about 50 million euros to supply five double-deck trains to German Deutsche Bahn AG.
Auto parts giant Magna International Inc, said it will buy Germany-based ixetic Verwaltungs GmbH for about 308 million euros to expand its engine and transmission pumps business.
Moreover, Keyera Corp plans to invest $210 million to boost recoveries of ethane and other high-margin natural gas liquids at a gas plant in west central Alberta.
On the economic slate, Statistics Canada came out with a couple of notable figures this morning. Its Industrial Product Price Index edged down 0.1% in August from July, due mostly to lower prices for motor vehicles and other transportation equipment.
The Raw Materials Price Index rose 3.4% in August, mostly because of higher prices for mineral fuels, specifically crude oil.
ON BAYSTREET
The TSX Venture Exchange grew 12.20 points to finish the week at 1,334.51
ON WALLSTREET
Strength in European markets lent good vibes to their counterparts in the U.S. Monday morning.
Futures for the Dow Jones Industrials zoomed ahead 73 points, or 0.6%, to 13,428, about 30 minutes before the opening bell. Futures for the S&P 500 added six points, or 0.4%, to 1,440.20, and for the Nasdaq, futures gained 15 points, or 0.5%, to 2,807.
In the United States, the Institute for Supply Management will release its manufacturing Index for September later this morning, expected to tick up to 49.7 from 49.6 in the month prior, according to a survey of analysts by Briefing.com. As well, the U.S. government will release data on construction spending for August.
In company news, shares of Ceradyne surged 43% in premarket trading after 3M announced it would buy the ceramic components maker for $860 million U.S.
European stocks rallied after Spain proposed its 2013 budget and results from bank stress tests matched expectations. Britain's FTSE 100 rose 1.1%, while the DAX in Germany and France's CAC 40 increased 1.4%.
A report on euro-zone manufacturing showed continued contraction, though the 46.1 figure for September was a six-month high. Of course, any reading below 50 signals remaining at a record high of 11.4% in August.
In Asia, Japan's Nikkei 225 declined 0.8% after a central bank survey showed business sentiment had fallen. Markets in Shanghai and Hong Kong were closed for a holiday. A report on manufacturing activity in China rose to 49.8 in September, up from 49.2 in the prior month.
Oil for November delivery fell 13 cents to $92.06 U.S. a barrel.
Gold futures for December delivery gained $3.80 to $1,777.90 U.S. an ounce.
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