Canada's main stock index looked set to open weaker on Monday, as investors remained cautious ahead of the European Union summit, after Greece and its creditors failed to agree on a deal and Germany called for Athens to give up budgetary control.
Among Canadian stocks to watch this morning, Valeant Pharmaceuticals International said on Monday it has withdrawn its sweetened takeover bid for ISTA Pharmaceuticals Inc., citing a lack of progress.
Siemens AG said it will buy Canadian-based RuggedCom in a deal valued at about $382 million, topping a recent $280 million offer from U.S. manufacturer Belden Inc.
The Canadian dollar dipped a bit from its near-parity status with its American cousin, dropping 0.43 cents to 99.41 cents U.S.
U.S. stocks are also poised to open lower Monday, as investors remained gripped with much the same fear over Greece
Dow Jones futures fell 79 points, or 0.6%, to 12,535, while S&P futures slid 9.9 points, or 0.8%, to 1,302.60, and Nasdaq futures slumped 16 points, to 0.7% to 2,440.25. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.
Bank stocks were notably lower in premarket trading, with Bank of America down 2.2%, Citigroup falling about 0.8%, and JPMorgan Chase fell 1.2%. Deutsche Bank plunged 4.6% and HSBC dropped 2.1%.
Greek officials finished the weekend without a deal in their ongoing talks with private-sector creditors, and investors will be looking this week for the parties to finally reach an agreement.
Without such a deal, the country jeopardizes its access to bailout funds and might not be able to make a €14-billion debt payment due March 20.
European Union leaders will gather Monday for their first summit of the year.
The official agenda is focused on striking a balance between more austere fiscal measures for nations with unsustainable levels of debt and policies that will help revive economic growth across the 17-member euro-currency area.
But difficult debt negotiations in Greece have revived concerns about a default, and investors are growing worried about Portugal, where borrowing costs continue to soar.
European stocks slumped in midday trading. Britain's FTSE 100 fell 1%, the DAX in Germany dropped 0.8% and France's CAC 40 lost 1.2%.
Asian markets ended lower. Shanghai re-opened after a weeklong break for Lunar New Year, and the Shanghai Composite closed down 1.5%. The Hang Seng in Hong Kong fell 1.7% and Japan's Nikkei slumped 0.5%.
Oil for March delivery slipped 67 cents to $98.89 U.S. a barrel.
Gold futures for February delivery fell $11.70 to $1,720.50 U.S. an ounce
