Canada's main stock index looked set to open lower on Monday, as the political impasse in Greece and signs China was struggling to shore up its economy cast a shadow on global growth prospects and hurt commodity prices.
The S&P/TSX Composite Index dropped 41.46 points to close Friday at 11,694.71
The Canadian dollar traded this morning down 0.46 cents to 99.53 cents U.S.
Among Canadian stocks to watch this morning, Legacy Oil + Gas Inc., which posted a first-quarter profit on increased production and higher prices.
Iamgold Corp.’s first-quarter net earnings from continuing operations fell 11% as gold production for the quarter fell and mining costs increased.
The CEO of Canadian Pacific has lost the support of two more big investors ahead of a crucial shareholder vote, pointing to victory for activist investor William Ackman in a bruising proxy battle.
Toronto Dominion Bank agreed to pay $62 million to settle U.S. lawsuits accusing it of charging customers excessive overdraft fees
ON BAYSTREET
The TSX Venture Exchange slipped 9.73 points to 1,345.58, while the Nasdaq Canada gained 1.13 points to 380.50.
ON WALLSTREET
Investors are again bracing for a rough day, amid political chaos in Greece and debt problems in other European centres.
Futures for the Dow Jones Industrials plunged 80 points, or 0.6%, to 12,708. S&P 500 futures were last down 11.5 points or 0.9% to 1,338.50. Nasdaq 100 futures fell 18 points, or 0.7%, to 2,593.
Overseas, British, French and German markets had all tumbled at least 2%. Spain’s IBEX 35 index was down 3%.
The selloff comes as Greece politicians have failed again to reach an agreement to form a coalition government, and as output at factories in the euro-zone unexpectedly fell 0.3% in March. Economists polled by Reuters had been expecting an increase of 0.4%.
With no major economic data due out of North America today, investors will likely remain fixated on Europe’s troubles. Fear that Greece’s debt crisis may soon be overshadowed by those in Spain, Portugal or Italy is on the rise.
The yield on Spain’s 10-year bonds rose to 6.2% on Monday. Greece and Ireland required bailouts once their 10-year yields crossed the 7% threshold.
Oil prices capsized $1.86, or 1.9%, to $99.53 U.S. a barrel.
Gold for June delivery declined as much as 1.6% to $1,558.80 an ounce, a new low for the year.
