Canada's main stock index looked set to open higher on speculation the U.S. Federal Reserve will announce another bond buying program this week, despite some caution ahead of a German ruling on the euro-zone's new bailout fund.
The S&P/TSX Composite index fell back 52.58 points to close Monday at 12,215.43, after spending much of the day straddling the breakeven mark. Futures traded up 0.4% this morning.
The Canadian dollar added 0.47 cents Tuesday morning to 102.75 cents U.S.
Among the stocks to watch this morning, oil and natural gas up-and-comer NuVista Energy Ltd. said it will sell three properties in Alberta and Saskatchewan in Canada for about $236 million to repay debt.
On the economic ledger, Statistics Canada reported this morning that Canada's merchandise exports fell 3.4% and imports decreased 2.2% in July. As a result, the agency says, Canada's trade deficit with the world expanded from $1.9 billion in June to $2.3 billion in July.
Moreover, Canada Mortgage and Housing Corporation released figures this morning saying that housing starts surged unexpectedly to 224,900 units in August, compared with 208,000 units in July. The July figure was revised down slightly from a previously-reported 208,500 units.
ON BAYSTREET
The TSX Venture Exchange retreated six points to 1,270.71.
ON WALLSTREET
U.S. stocks were poised for a slightly higher open Tuesday, as investors remained unwilling to place any big bets ahead of decisions out of Europe and from the Federal Reserve.
Futures for the Dow Jones Industrials took on 37 points, or 0.3%, to 13,274, about 30 minutes before the opening bell. Futures for the S&P 500 improved 5.2 points, or 0.4%, to 1,431.60, and for the Nasdaq, futures were better by 7.5 points, or 0.3%, to 2,792.
Hewlett-Packard Co. expects to lay off 29,000 workers over the next two years, which is 2,000 more than it had originally said.
Shares of bailed out insurer AIG continued their slide in pre-market trading. The Treasury Department said Sunday it is selling $18 billion U.S. worth of AIG shares, representing more than half of its remaining $29-billion U.S. stake in the bailed-out insurer.
Investors are waiting to see how the ruling may impact the European Central Bank's plans to preserve the euro, which remained near its highest level against the U.S. dollar since May.
European markets were lower in afternoon trading, while Asian markets closed mixed.
The Census Bureau is scheduled to release data on the U.S. trade balance for July on Tuesday morning. The report is expected to show a deficit of $44 billion, according to a survey of analysts by Briefing.com.
Oil prices nudged up 12 cents to $96.66 U.S. a barrel.
Gold prices gained two dollars to $1,733.80 U.S. an ounce.
