Toronto's main stock index looked set to open slightly higher, tracking the U.S. market, as negotiations continue over resolving a fiscal cliff involving $600 billion U.S. in automatic tax hikes and spending cuts that kick in at the start of January and could drag the economy in recession.
The S&P/TSX composite index fell 57.65 points to end Friday at 12,316.12. Futures nosed up 0.04% Monday morning.
The Canadian dollar inched up 0.13 cents to 101.48 cents U.S. Monday morning
Canaccord Genuity has raised the target price of Aeterna Zentaris Inc. to $2.50 from $2.25 citing the recently granted special protocol assessment for AEZS-108 as an incremental positive as it reduces regulatory risk.
TD Securities cuts price target on Cogeco Inc. to $47 from $49 citing its unit, Cogeco Cable Inc's, dilutive acquisition of Peer 1 Networks.
ON BAYSTREET
The TSX Venture Exchange added 5.09 points Friday to 1,201.84
ON WALLSTREET
U.S. stock futures were little changed, as were European markets as investors brace for the fiscal cliff reckoning.
Futures for the Dow Industrials fell 31 points, or 0.2%, to 13, 105. Futures for the S&P 500 hesitated 3.4 points, or 0.2%, to 1,422.50, and futures for the tech-rich Nasdaq tripped 11.50 points, or 0.4%, to 2,649.
On the last day of 2012, there is little news to distract investors from the fiscal cliff talks. There are no economic reports on tap, and not much in the way of company news.
An exception was a $665-million U.S. deal announced late Sunday to buy investment banking firm Duff & Phelps by a joint venture led by the Carlyle Group. The offer price represented a 19% premium over Duff & Phelps' stock close Friday.
Investors are hoping that leaders will reach some sort of deal that will postpone at least some of the automatic tax hikes and spending cuts due to take effect on Jan. 1.
Congressional negotiators were at work Sunday, but went home without a deal. Senate Majority Leader Harry Reid said Sunday there is "still significant distance between the two sides." Talks will continue Monday.
Even with all the uncertainty, stocks have overall had a pretty good year, with all three indexes up between 6% and 14%.
Asian stocks got a boost from strong manufacturing data out of China. The Shanghai Composite, one of the world's worst performing indexes, managed to eke out a 3% gain for the year and the Nikkei, which was closed Monday, ended the year with a 20% gain.
Oil prices ditched 39 cents to $90.40 cents U.S. a barrel
Gold prices surged $9.60 an ounce to $1,665.30 U.S.
