Markets in Toronto looked set to open lower on Monday, as positive Chinese economic data did little to offset uncertainties surrounding a possible U.S. strike in Syria and the timeline of the U.S. Federal Reserve's monetary stimulus program.
The S&P/TSX composite index closed Friday down 24.14 points to 12,820.92, with futures down 0.1%
The Canadian dollar spiked 0.32 cents to 96.34 cents U.S. early Monday
Stocks to watch this morning include Bombardier Inc., whose new CSeries aircraft completed high-speed taxi trials on Friday as anticipation mounted that the narrow-body plane could make its inaugural flight within the next week or so.
Romanian legislators are set to reject Gabriel Resources's plan for Europe's biggest open-cast gold mine in the Carpathians due to widespread opposition, according to Prime Minister Victor Ponta.
Oncolytics Biotech Inc said its cancer drug Reolysin reduced the size of tumors in 92% of lung cancer patients in a mid-stage trial. The company's shares rose as much as 22% to $3.22 before the bell.
Muted inflation data added to a run of August figures suggesting the protracted slowdown in China's economy may be bottoming out, helped by targeted support measures and signs of improved export demand.
On the domestic economic calendar, Statistics Canada reported this morning that building permits improved 20.7% in July to $8 billion. The market call was for a hike of 3.5%.
The total value of building permits continued to trend upward on the strength of six gains in seven months.
ON BAYSTREET
The TSX Venture Exchange improved 7.14 points Friday to 954.92
ON WALLSTREET
Investors are firmly focused on the situation in Syria as Congress returns from recess Monday to vote on whether to authorize limited military strikes against the Middle Eastern nation.
Ahead of the opening bell, futures for the Dow Jones Industrials hiked 35 points, or 0.2%, to 14,944. Futures for the S&P 500 gained 3.8 points, or 0.2%, at 1,657.30, and futures for the NASDAQ picked up 14.25 points, or 0.5%, at 3,143.75
Smithfield Foods and China's Shuanghui International announced after the closing bell Friday that U.S. regulators had cleared Shuanghui's proposed acquisition of the American meat processor. Smithfield shares rose in after-hours trading.
For more than a week, U.S. President Obama has been trying to rally support for military action from members of Congress, and the broader domestic and international audience.
This has resulted in volatility in stock markets and oil prices as traders worry about the possible knock-on effects of a strike.
Markets are likely to be guided by developments in Syria with few major corporate or economic reports scheduled for release Monday.
Hiring in America continued in August, but at a slower pace, which may signal the U.s. Federal Reserve will stand pat on its bond-buying program when it meets next week. The Fed has been consistently saying it will not begin tapering until it sees marked improvement in the labour market.
European markets were mixed in morning trading, while Asian markets closed with healthy gains.
Japanese stocks hit a one-month high Monday as Tokyo's Olympic win and stronger-than-expected economic data gave investors a double-dose of good news.
In China, the Shanghai Composite index surged by 3.4% and Hong Kong's Hang Sengindex rose by 0.6%.
Oil prices erased 59 cents to $109.94 U.S. a barrel
Gold prices fell four dollars to $1,382.50 U.S. an ounce.
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