Canada's main stock index looked set to open higher on Tuesday, tracking U.S. and European counterparts, after a sharp rise in German investor sentiment overshadowed political turmoil in Italy.
The S&P/TSX composite index gained 70.88 points to end Monday at 12,230.47
The Canadian dollar took on 0.05 cents to 101.41 cents U.S. Tuesday morning.
Patent licensing company Wi-LAN Inc said it has filed a lawsuit against Research In Motion Ltd for infringing on a patent related to bluetooth technology.
Canadian department store operator Hudson's Bay Co reported a steeper loss from continuing operations on Tuesday as it made its first quarterly report since returning to the public market in November and initiated a quarterly dividend.
The $15.1-billion U.S. takeover of Canadian oil and gas producer Nexen Inc. by China's state-owned CNOOC Ltd is not yet wrapped up despite the Canadian government's blessing after months of heated debate
Separately, Britain's energy ministry said it will not stand in the way of China's CNOOC takeover of Canada's Nexen, which owns a 43% stake in the North Sea Buzzard oil field that helps set the benchmark Brent crude price.
Eye drug developer QLT Inc. expects its synthetic retinoid program, an experimental treatment for some inherited eye diseases that can cause blindness, to be valued at up to $750 million. Several potential buyers have approached the company for the program.
German analyst and investor sentiment rose sharply in December on the back of encouraging U.S. economic data, entering positive territory for the first time since May, a leading survey showed.
On the economic calendar, Statistics Canada reported this morning that our trade balance with the rest of the world is less than it was last month. Canada's merchandise imports declined 1.2% while exports increased 1.0% in October. As a result, Canada's trade deficit with the world narrowed from $1.0 billion in September to $169 million in October.
ON BAYSTREET
The TSX Venture Exchange moved slightly ahead, 0.47 points, to close Monday at 1,186.53
ON WALLSTREET
Trading could be quiet Tuesday, with investors waiting for the resolution of fiscal cliff negotiations in Washington and the outcome of the U.S. Federal Reserve two-day meeting.
The Dow Jones Industrials futures added 28 points, or 0.2%, to 13,215, while S&P 500 futures gained 3.8 points, or 0.3%, to 1,424, and futures for the tech-rich Nasdaq prospered 11.50 points, or 0.4%, to 2,662.
On the corporate front, Delta Air Lines and Virgin Atlantic announced a new joint venture, which includes Delta buying the 49% stake in the British airline that is currently owned by Singapore Airline. Virgin Group and Sir Richard Branson will retain the majority 51% stake and Virgin Atlantic will maintain its brand. Delta shares gained ground in premarket trading.
Discount retailer Dollar General posted a higher-than-expected profit for the third quarter, and sales in line with forecasts.
The Treasury Department will sell the last of its shares in bailed-out insurer AIG at $32.50, raising about $7.6 billion U.S. Between the Fed and Treasury's combined $182-billion U.S. injection into AIG, the government enjoyed a profit of $22.7 billion U.S. Shares of AIG slipped in premarket trading.
HSBC said early Tuesday it will pay $1.92 billion U.S. to resolve money-laundering allegations.
Investors have been reluctant to place big bets before lawmakers reach a compromise on tax increases and spending cuts set to kick in automatically on Jan. 1. Without a deal, the U.S. economy could fall back into a recession.
Meanwhile, investors are waiting to hear what the Fed will have to say at the conclusion of its two-day meeting, which begins Tuesday.
The central bank will have to decide the fate of one of its stimulus programs, Operation Twist, which is set to end this month. The Fed will also provide new economic forecasts.
In other news, the Census Bureau will release data on the trade deficit and wholesale inventories for October on Tuesday.
Europe is also in the spotlight after Italian Prime Minister Mario Monti unexpectedly announced plans over the weekend to step down once parliament passes a national budget later this month.
European markets edged higher in cautious afternoon trade. Greece is due to announce the results of a debt buyback later, triggering the disbursement of the next installment of its EU-IMF bailout funds.
Asian markets ended mixed, with the Nikkei and Shanghai Composite losing ground
Oil prices put on 51 cents to $86.07 U.S. a barrel
Gold prices slid 30 cents to $1,714.10 U.S. an ounce.
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