Stock markets in Toronto had an eye to opening higher on Tuesday after comments from top Chinese and U.S. central bankers eased worries about the future of the Federal Reserve's monetary easing policy.
The S&P/TSX Composite Index dropped 158.80 points, or 1.3%, to end Monday at 11,836.86. Futures hiked 0.7%, however.
The Canadian dollar eked up 0.07 cents to 95.32 cents U.S. early Tuesday.
China's central bank will help any banks facing a temporary shortage with cash, and has already provided money to some institutions, it said, in further comments aimed at soothing battered money markets.
BlackBerry launched a service allowing government agencies and corporate clients to secure and manage devices powered by Google's Android platform and Apple Inc's iOS operating system.
Suncor Energy Inc said on Monday it has temporarily reduced production from its Fort McMurray operations in Alberta, as a result of the shutdown of the Enbridge Inc pipeline system within the region.
ON BAYSTREET
The TSX Venture Exchange let go of 15.77 points Monday to 880.02
ON WALLSTREET
Wall Street was bracing for a bounce Tuesday after some of the concerns about China's credit problems eased overnight.
Futures for the Dow Industrials spiked 63 points, or 0.4%, to 14,651. Futures for the S&P 500 added 11.80 points, or 0.8%, to 1,578, and futures for the NASDAQ zoomed 22.50 points, or 0.8%, to 2,866.50
On the corporate front, shares of Walgreen sank nearly 5% after the drugstore chain missed earnings and revenue forecasts.
Barnes & Noble and Carnival are also due to release quarterly earnings before the open. Gunmaker Smith & Wesson will release fourth-quarter results after the market closes.
Meanwhile, investors will have some fresh U.S. economic data to sift through.
The S&P Case-Shiller index, which tracks home prices in the 20 largest U.S. markets, will be released at 9 a.m. ET, and the government's report on new-home sales for May is due at 10 a.m. ET. The Conference Board also releases its monthly reading of consumer confidence at 10 a.m.
The markets are coming off a big selloff, driven by continued uncertainty about China and when the U.S. Federal Reserve will ease its stimulus. The double whammy of uncertainty has caused volatility to spike.
But comments attributed to a People's Bank of China official helped ease some jitters. The official reportedly said the bank will keep interest rates in check, and that seasonal forces that have driven them higher recently will fade.
Following his comments, the Shanghai Composite, which was down as much as 5.6%, recovered to close just 0.2% lower.
European markets were making significant gains in morning trading after taking a big fall Monday. Germany's DAX index took the lead, rising by just over 1.5%.
Asian markets ended with mixed results after a volatile day. Like the Shanghai index, Hong Kong's Hang Seng also dropped during the day, but closed with a 0.2% gain. The Nikkei 225 in Japan ended with a 0.7% loss.
Oil prices gained 56 cents to $95.74 U.S. a barrel
Gold prices gained $9.20 to $1,286 U.S.
