Stock markets in Toronto looked set to open higher on Tuesday, taking cues from global markets, as worries over third-quarter earnings subsided after stronger-than-expected Citigroup earnings and recent encouraging retail sales data from the world's largest economy.
The S&P/TSX composite index closed Monday up 27.92 points to 12,229.96, with futures nosing up 0.2%.
The Canadian dollar plummeted 0.7 cents Tuesday morning to 101.27 cents U.S.
Bombardier Inc. took another step toward breaking the Boeing-Airbus lock on the narrow body jet market Monday, saying it has begun assembling its rival CSeries jet, and that it is still on course to start flight-testing by year-end, despite concerns that timetable could slip.
Top Canadian bureaucrat Simon Kennedy, involved in examining a landmark $15.1-billion bid by China's CNOOC Ltd for oil producer Nexen Inc., will take up another government job on Nov. 12, a hint that Ottawa will announce its decision on whether to approve the takeover before then.
On the economic slate, Statistics Canada reported this morning that non-resident investors acquired $6.9 billion of Canadian securities in August, favouring debt instruments over equity in contrast to July. Canadian investors reduced their holdings of foreign securities by $1.7 billion, following three straight months of acquisition.
Elsewhere, the agency said that manufacturing sales shot 1.5% higher to $49.5 billion in August, to highs they haven’t seen since March 2012.
ON BAYSTREET
The TSX Venture Exchange eased 10.08 points Monday to 1,282.73
ON WALLSTREET
U.S. stock futures were higher Tuesday, as investors took in a raft of corporate earnings and awaited the latest inflation data.
Futures for the Dow Jones Industrials picked up 58 points, or 0.4%, to 13,417, about 30 minutes before the opening bell. Futures for the S&P 500 moved 6.80 points, or 0.5%, higher to 1,442.30, and for the Nasdaq, futures grew 14.75 points, or 0.5%, to 2,746.
Goldman Sachs posted profit and revenue for the third quarter that topped expectations. Shares of the investment bank rose 1% following the news.
Johnson & Johnson came out with quarterly earnings that beat analysts' expectations, while Coca-Cola reported earnings per share that were in line with expectations, but revenue was slightly lower than anticipated.
Intel and IBM will report after the close. Overall, companies in the S&P 500 are expected to report third-quarter earnings that are down 1% from last year, according to S&P Capital IQ.
Also on tap for Tuesday morning, investors will receive reports on inflation, industrial production and foreign purchases of Treasuries.
European stocks were higher in midday trading. Britain's FTSE 100 rose 0.6%, the DAX in Germany added 0.7% and France's CAC 40 edged up 0.5%.
Asian markets ended mostly higher. The Shanghai Composite finished flat, the Hang Seng in Hong Kong ticked up 0.3%, and Japan's Nikkei climbed 1.4%.
