Toronto stock index futures pointed to a lower open on Monday as a potential U.S. government shutdown coupled with political tensions in Italy dragged investor sentiment lower.
The S&P/TSX composite index inched up 2.84 points to end Friday at 12,844.08, with futures off 0.7%.
The Canadian dollar added 0.28 cents to 97.20 cents U.S. early Monday
Pacific Rubiales Energy Corp, Colombia's largest private oil company, said it will buy compatriot oil producer and explorer Petrominerales Ltd for $1.6 billion, financing the deal with cash and loans.
Canaccord Genuity cut the rating on Martinrea International Inc to hold from buy and target price to $11.50 from $14.75 on outlook and management risk.
RBC cut the target price on Midas Gold Corp. to $1.60 from $6 to reflect updated operating and project financing assumptions for Golden Meadows in the current weak gold price environment.
On the economic calendar, Statistics Canada reported that its consumer price index grew 0.6% in July, recovering from a decline of 0.5% in June. The nation’s number-crunchers also reported that its industrial product price index gained 0.2% in August, while the raw materials price index hiked 0.9% during the same month.
ON BAYSTREET
The TSX Venture Exchange gained 4.73 points Friday to 952.86
ON WALLSTREET
Stock markets are set for a selloff Monday as political squabbling in Washington threatens to lead to a government shutdown at midnight.
Ahead of the opening bell, futures for the Dow Jones Industrials tumbled 127 points, or 0.8%, to 15,068. Futures for the S&P 500 fell 15.50 points, or 0.9%, to 1,670.90, and futures for the NASDAQ backtracked 24.50 points, or 0.8%, to 3,198.50, as investors lose faith in their political leaders and worry about the effect that a shutdown could have on the U.S. economy.
Monday is the last day of the month and the third quarter. Both the Dow Jones industrial average and the S&P 500 index have risen by well over 3% so far in September, hitting record highs as investors cheered continued stimulus by the U.S. Federal Reserve. All three indexes are up for the quarter, led by the NASDAQ, which has risen 11%.
But markets have pulled back as the shutdown looms and the U.S. nears its debt ceiling, a limit on the amount it can borrow. If the government hits its debt ceiling in mid-October, it will not be able to pay its bills and will default, though many people believe a last-minute solution will be found.
European markets were all falling in midday trading, with renewed political turmoil in Italy further undermining sentiment. Of the major indexes, the CAC 40 in Paris was deepest in the red, declining by 1.3%.
Italian markets took a hit after former Prime Minister Silvio Berlusconi pulled his support for the country's coalition government over the weekend, threatening early elections. The main Italian stock index fell by over 1.5% and yields on 10-year government bonds edged higher.
Asian markets closed with losses, though the Shanghai Composite index bucked the trend and moved higher. China launched a free-trade zone in the city on Sunday, an experiment in promoting trade, expanding foreign investment access and liberalizing the financial sector.
Oil prices fell $1.32 to $101.55 U.S. a barrel
Gold prices dropped $2.90 to $1,336.30 U.S. an ounce.
