Markets in Toronto looked set to open sharply lower on Monday as markets were pulled down by worries surrounding China's banking sector and the U.S. Federal Reserve's suggestion that it could begin scaling back its monetary stimulus later this year.
The S&P/TSX Composite Index picked up 27.09 points, to end Friday at 11,995.66. Futures Monday were down however, by 0.7%.
The Canadian dollar slumped 0.38 cents to 95.02 cents U.S. early Monday.
Barrick Gold Corp will lay off up to a third of its corporate staff at its headquarters in Toronto and other offices, as the world's top bullion producer intensifies a downsizing plan amid a slump in the price of gold.
Canaccord Genuity started with buy rating on Halogen Software Inc. harbouring the opinion that the company is very well-positioned to benefit from an accelerating shift in the middle market towards Talent Management software tool adoption.
CIBC raised the target price on New Flyer Industries Inc. to $11 from $10, says the company's acquisition of North American Bus Industries Inc from Cerberus Capital Management could prove favorable.
ON BAYSTREET
The TSX Venture Exchange eked higher by 3.19 points to close out the week at 895.79
ON WALLSTREET
Investors are bracing for a rough start on Wall Street as persistent worries about the Fed easing up on stimulus were exacerbated by a plunge in Chinese stocks.
Futures for the Dow Industrials collapsed 143 points, or 1%, to 14,568. Futures for the S&P 500 dropped 14.50 points, or 0.9%, to 1,569.60, and futures for the NASDAQ flopped 23.50 points, or 0.8%, to 2,841.50
Shares of Vanguard Health Systems surged 66% after inking a $1.8-billion U.S. acquisition deal with Tenet Healthcare Corp.
The People's Bank of China told the country's largest banks Monday to rein in risky loans and improve their balance sheets, a warning that sent a jolt through already unsettled equity markets.
The Shanghai Composite index was hardest hit by the announcement, registering a decline of 5.3%. The Hang Seng in Hong Kong lost nearly 3%. Japan's Nikkei 225 index declined by 1.3%.
European stocks were lower in midday trading. Germany's benchmark DAX index was tumbling by more than 1%.
Oil prices slipped 12 cents to $93.57 U.S. a barrel
Gold prices chopped $10.40 to $1,281.20 U.S.
