Canadian stock indexes moved cautiously into the green on Monday, with investors still hoping for policy action in Europe after Mario Draghi last Thursday vowed that the European Central Bank will do whatever it takes to preserve the euro.
The S&P/TSX Composite index took on 21.12 points to begin the week at 11,787.48
The Canadian dollar added 0.04 cents to 99.60 cents U.S.
Among stocks to watch this morning, Canadian Oil Sands Ltd, which owns the largest stake in Syncrude Canada Ltd, but noticed its second-quarter profit sank 71% due major plant maintenance that reduced production, lower oil prices and higher operating costs.
Enbridge Inc. prepared on Sunday to replace part of a pipeline that leaked more than 1,000 barrels of oil in a Wisconsin field, shutting down a key conduit from Canada and provoking new anger from Washington.
Specialty pump maker Fibrek Inc. said it was temporarily halting production at its market pulp mill in Saint-Félicien, Quebec to carry out repairs.
U.S. Silver Corp urged shareholders to reject Hecla Mining Co's hostile bid for the company, calling it "inadequate" and "highly opportunistic," and asked them to vote in favor of RX Gold & Silver Inc's offer.
ON BAYSTREET
The TSX Venture Exchange stuttered 1.88 points to 1,188.76. The Nasdaq Canada index gained 1.08 points to 339.38.
In all, eight of the 14 Toronto subgroups were gainers, led by gold and information technology, each up 0.5%, while materials advanced 0.4%.
The half-dozen laggards were weighed mostly by utilities, consumer discretionaries and industrials, each down 0.3%.
ON WALLSTREET
Stocks edged higher Monday as investors remained cautious ahead of two big meetings by U.S. and European central bankers.
The Dow Jones industrial average moved higher by 25.77 points, to begin Monday at 13,101.43
The S&P 500 took on 2.74 points to 1,388.71. The Nasdaq grew 8.32 points to 2,966.41
HSBC said it put aside about $2 billion U.S. to compensate U.K. customers for misselling of payment-protection insurance, and to pay costs in the U.S. related to accusations it failed to prevent billions of dollars worth of money transfers linked to drug cartels and terrorist groups.
Apple and Samsung begin their patent battle in court Monday. Apple filed a lawsuit against Samsung last year alleging that the company's smartphones and tablets are knockoffs of its iPhone and iPad, and an infringement on its patents. Apple is seeking $2.5 billion U.S. in damages.
Expectations are high for the U.S. Federal Reserve and the European Central Bank to announce new measures to boost the economy when they meet later this week. The Fed's two-day meeting culminates in an announcement on monetary policy Wednesday.
Once the Fed wraps up, the E.C.B. will take center stage, with its Governing Council meeting in Frankfurt on Thursday. Last week E.C.B. President Mario Draghi said the central bank would do "whatever it takes" to preserve the euro. Investors now want to see if he'll put those words into action.
While the central bank meetings will be the forefront, investors will also be digesting all the earnings results that have come out over the past couple of weeks, and those that are due in the week ahead, said one expert.
Nearly 60% of the S&P 500 companies have already reported, and results have been lackluster. Excluding the financials sector, second quarter earnings are expected to decline 0.4%, according to Thomson Reuters, marking the end to a 10-quarter winning streak.
The price on the benchmark 10-year U.S. Treasury gained a bit, lowering yields to 1.54% from Friday’s 1.56%. Treasury prices and yields move in opposite directions.
Oil for September delivery dropped 18 cents to $89.95 U.S. a barrel.
Gold futures for August delivery fell $2.40 to $1,615.60 U.S. an ounce.
