Toronto's main stock index looked set to open higher on Tuesday, tracking global markets, fueled by expectation that U.S. lawmakers might reach an agreement to avoid looming tax increases and spending cuts that threaten to hurt the world's biggest economy.
The S&P/TSX composite index was 15.37 points lower Monday to close at 12,281.35
The Canadian dollar faded 0.01 cents to 101.56 cents U.S. Tuesday morning
BMO resumes coverage of AuRico Gold Inc. with a market perform rating, raising its price target to $9.50 from $9, after the company completed the sale of its Ocampo project and announced a share buyback program
Raymond James cut the target price on First Majestic Silver to $26 from $26.75 after the company said it would acquire Orko Silver Corp in a share and cash deal worth $345 million
ON BAYSTREET
The TSX Venture Exchange gained 1.37 points Monday to 1,184.99
ON WALLSTREET
U.S. stocks rose Monday, as signs a deal is taking shape in the fiscal cliff negotiations reassured investors. That momentum could continue into Tuesday, with stock futures pointing to a solidly higher opening on Wall Street.
Futures for the Dow Industrials rocketed 24 points, or 0.2%, to 13,208. Futures for the S&P 500 inched forward 1.5 points, or 0.1%, to 1,428.50, and futures for the tech-rich Nasdaq gained 13 points, or 0.5%, to 2,675
House Speaker John Boehner's suggestion that he was open to including higher tax rates on the wealthiest Americans has been described as "progress" by the White House. President Barak Obama responded to the offer with his own compromise on both tax increases and spending cuts.
With few major economic or corporate reports on the agenda Tuesday, investors will be looking for further evidence that a deal is being hammered out in Washington.
Those fiscal cliff hopes boosted Bank of America shares, which were up 2.8% in premarket trading, and JPMorgan, which gained 1.1%.
After the closing bell Tuesday, tech giant Oracle will report quarterly results.
Late Monday, Apple lost an important ruling when a federal judge denied its request for a permanent ban on 26 Samsung products that Apple charged -- and a jury ruled -- had willfully infringed Apple's patents. However, Apple shares were trading 1.4% higher in premarket trade.
European markets were higher in afternoon trading, taking their cue from the positive close Monday in the U.S.
Meanwhile, Asian markets ended mixed, with Japanese shares continuing to rally on hopes of further economic stimulus following the resounding election victory for Shinzo Abe's Liberal Democratic Party.
Oil prices notched 45 cents higher a barrel to $87.65 U.S.
Gold prices ditched 20 cents to $1,698 U.S. an ounce.
Related Stories
