Canada's main stock index looked set to open higher on Friday, ahead of key U.S. budget talks aimed at preventing large-scale automatic fiscal tightening.
The S&P/TSX Composite Index backpedaled 118.41 points, to end Thursday at 11,811.38. Futures tailed off 0.2%.
The Canadian dollar gained 0.06 cents to 99.97 cents U.S. Friday morning.
Astral Media Inc and its suitor, BCE Inc, are poised to announce a new takeover deal that seeks to overcome regulatory opposition with a plan to auction off a number of Astral's English broadcast assets, according to a report in the Globe and Mail.
Oil wizard Talisman has drilled a dry well 17 kilometers southeast of the Varg field in the North Sea.
On the economic list, Statistics Canada told us that foreign investment in Canadian securities advanced to $13.9 billion in September, mostly due to buys of government bonds and corporate equities. Canadian investment in foreign securities hit $6 billion, a six-month high, mostly due to the acquisition of U.S. equities.
ON BAYSTREET
The TSX Venture Exchange staggered 35.99 points to 1,222.70
ON WALLSTREET
U.S. stock futures turned higher Friday after a report boosted optimism that the fiscal cliff may be avoided, at least partially.
The Dow Jones Industrials futures eked up eight points to 12,530 while S&P 500 futures pointed upward 4.40 points, or 0.3%, to 1,355.70, and futures for the tech-rich Nasdaq gained 9.50 points, or 0.4%, to 2,531.50
The report, in the Wall Street Journal, said the Obama administration is considering a plan to replace massive spending cuts with a combination of smaller, targeted cuts and tax increases. By postponing the so-called sequester, lawmakers could put off a number of large deficit-reduction decisions until mid-2013.
The president is scheduled to meet with top Congressional leaders Friday to discuss the fiscal cliff. He has vowed not to keep the Bush tax cuts in place for Americans earning more than $200,000 U.S., and investors are also bracing for tax hikes on capital gains and carried interest. Since Obama's re-election last week, the S&P 500 and Dow has fallen about 5%.
Economic reports on tap Friday morning include data on foreign purchases of Treasuries and industrial production. Industrial production is expected to have increased 0.1% in October, according to a survey of analysts
In Europe, investors also have their attention on the fiscal cliff negotiations in the United States. European stocks declined for a third day in midday trading. Britain's FTSE 100 slid 0.5%, the DAX in Germany fell 0.2% and France's CAC 40 lost 0.5%.
Asian markets ended mixed. The Shanghai Composite lost 0.8%, while the Hang Seng in Hong Kong gained 0.2%, and Japan's Nikkei 225 rose 2.2%.
Crude oil for December delivery rose $1.04 to $86.49 U.S. a barrel.
Gold futures for December delivery were flat at $1,713.30 U.S. an ounce.
