Equity markets in Toronto looked set to open lower on Wednesday as a partial U.S. government shutdown entered its second day, with investors worrying about its implications on debt ceiling talks later this month.
The S&P/TSX composite index gained 60.25 points to end Tuesday at 12,847.44, with futures down 0.4% Wednesday.
The Canadian dollar slid 0.12 cents to 96.72 cents U.S. early Wednesday
Fertilizer whiz Agrium Inc. said on Tuesday it has completed its purchase of Viterra Inc's Canadian farm retail stores.
Pacific Rubiales will offer more Colombian crude on the open market by December after it takes over the production of Petrominerales, according to sources.
Benchmark initiated coverage on Imax Corp. with a hold rating on its U.S. listed shares with a price target of $29.42, saying it remains optimistic near term over the Imax brand and premium ticket experience it offers to a rapidly unfolding international growth opportunity.
National Bank Financial started coverage of Milestone Apartments REIT with an outperform rating and a target price of $11.60, saying the company's integrated management platform is poised for outsized growth in strong U.S. markets.
ON BAYSTREET
The TSX Venture Exchange eked up 0.76 points Tuesday to 941.91
ON WALLSTREET
Investors are starting to worry that the political stalemate in Washington will hurt growth, and put the country at risk of being unable to pay all of its bills later this month.
Ahead of the opening bell, futures for the Dow Jones Industrials diminished 100 points, or 0.7%, to 15,020. Futures for the S&P 500 backtracked 9.20 points, or 0.5%, to 1,680.20, and futures for the NASDAQ dipped 11.25 points, or 0.4%, to 3,234.25
In corporate news, agriculture technology firm Monsanto is set to release quarterly results before the opening bell.
Also, the Empire State Reality Trust, which owns the Empire State Building and other real estate holdings in the New York City area, will start trading Wednesday as a public company after raising $930 million U.S. through an initial public offering.
With Congress unable to agree on a deal to fund the government past Monday, more than 800,000 federal workers are being furloughed without pay this week. In addition, government agencies are curtailing their services and federal museums, parks and monuments are closed to the public.
And Treasury Secretary Jack Lew said Tuesday that the government has started to use the last of its "extraordinary measures" to ensure it stays below debt ceiling. If the ceiling isn't raised, the risk of a U.S. default will rise.
Payroll processor ADP's monthly report on private-sector jobs showed that the U.S. added 166,000 jobs in September, slightly below expectations. The report didn't move markets Wednesday morning, although it has more significance this month that usual. The U.S. government's monthly unemployment report is unlikely to be released this Friday because of the government shutdown.
European markets were weaker in morning trading, weighed down by worries about the U.S.
The European Central Bank left interest rates unchanged after its latest policy meeting. ECB President Mario Draghi will speak this morning.
Asian markets ended mixed. Hong Kong's Hang Seng, which was closed Tuesday, gained 0.5% in response to Wall Street's rally.
Oil prices settled five cents to $101.99 U.S. a barrel
Gold prices tacked on $8.70 to $1,294.80 U.S. an ounce.
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