The Toronto stock market was set to open slightly higher Tuesday amid lower commodity prices and a major deal for transportation giant Bombardier Inc.
The S&P/TSX Composite Index ended Monday off 98.85 points to 11,401.78
The Canadian dollar was up 0.30 of a cent this morning to 97.29 cents U.S.
One of Warren Buffett’s companies, NetJets Inc., has signed a deal to buy up to 275 Bombardier Challenger business jets that could be worth up to $7.3 billion U.S. Bombardier said it has also signed a 15-year service and maintenance agreement for the aircraft, worth as much as an additional $2.3 billion U.S. if all options are exercised.
In other corporate news, Canadian Pacific Railway’s David Raisbeck will step down as a member of its board of directors, reducing the number of directors at the company who were appointed before a proxy battle and subsequent boardroom shakeup. His resignation comes just weeks after New York-based Pershing Square Capital Management, CP’s biggest shareholder, succeeded in its months-long battle to oust Fred Green as CEO.
Ivernia Inc. is withdrawing from the Prairie Downs base metals project in Western Australia. Ivernia says a review of geological data shows the project’s potential does not justify exercising a purchase option under its earn-in agreement with Prairie Downs Metals Ltd.
ON BAYSTREET
The TSX Venture Exchange surrendered 16.22 points to 1,276.71. The Nasdaq Canada index erased 9.92 points to 362.11
ON WALLSTREET
U.S. stocks were poised to follow European stocks higher, a day after markets sold off on worries about the debt and banking crisis in Europe.
Futures for the Dow Industrials gained 38 points, or 0.3%, to 12,348, half an hour before the opening bell, while futures for the S&P 500 acquired 4.7 points, or 0.4%, to 1,305. Futures for the tech-rich Nasdaq tacked on 11.25 points, or 0.5%, to 2,521.25
Trading could be choppy, with little U.S. economic or company news on tap. Investors will continue to monitor uncertainty in Europe, and Spain's request for up to €100 billion ($125 billion U.S.) in assistance from the European Union its banking system.
As the situation in Spain heats up, bond yields have risen again to about 6.7%. Italian bond yields also rose Tuesday, remaining above the 6% benchmark -- a warning sign that the country could need a bailout of its own.
Meanwhile in Greece, elections this Sunday are seen as a pivotal moment that could determine if the country remains a member of the euro currency union.
European stocks rose in midday trading. Britain's FTSE 100 ticked up 0.4%, while the DAX in Germany added 0.5% and France's CAC 40 was 0.4% higher. All the indexes were down slightly from earlier highs.
Asian markets closed lower Tuesday, after a rise the previous day on stronger economic readings out of China. The Shanghai Composite fell 0.7%, while the Hang Seng in Hong Kong slid 0.4% and Japan's Nikkei ended 1% in the red.
Oil for July delivery continued to slide, losing 20 cents to $82.50 U.S. a barrel.
Gold futures for August delivery fell $4.40 to $1,592.40 U.S. an ounce.
