Canada's main stock index looked set to open higher on Tuesday as investors remained calm despite the first U.S. government shutdown in 17 years.
The S&P/TSX composite index faded 56.89 points finish Monday’s session at 12,840.93. Futures Tuesday were up 0.2%.
The Canadian dollar nicked ahead 0.02 cents to 97.05 cents U.S. early Tuesday
Intact Financial Corp said it will take catastrophe losses of $199 million in the third quarter due mainly to a series of bad weather events and a fiery train derailment that devastated the town of Lac-Megantic, Quebec in early July.
CIBC cut the rating on Brookfield Office Properties from sector perform from sector outperform after Brookfield Property Partners announced a proposal to acquire "any or all" Brookfield Office Properties shares outstanding.
Raymond James raised the price target on Genivar Inc. to $30 from $27 following a slew of positive data points for the company and the engineering services industry.
On the economic calendar, RBC’s Manufacturing Purchasing Managers’ Index for September is due out at 9:30 a.m. ET. The figure last month was 52.1.
ON BAYSTREET
The TSX Venture Exchange dipped 11.71 points to 941.15
ON WALLSTREET
Stocks were poised to open higher Tuesday, hours after the federal government partially shut down, as investors bet that the impasse will be short-lived.
Ahead of the opening bell, futures for the Dow Jones Industrials gained 39 points, or 0.3%, to 15,085. Futures for the S&P 500 gained 4.5 points, or 0.3%, to 1,678, and futures for the NASDAQ added 8.5 points, or 0.3%, to 3,217.50
Congress failed to agree on a short term extension of government funding late Monday, initiating a series of complex procedures to power down the federal agencies.
A government shutdown could cost the U.S. economy roughly $1 billion a week in pay lost by furloughed federal workers.
Several economic releases are slated for Tuesday, with the U.S. Census Bureau due to publish its monthly report on construction spending, and the Institute for Supply Management monthly manufacturing report. Major automakers will issue their monthly sales reports throughout the day.
In corporate news, drugstore operator Walgreen is set to release its quarterly results before the opening bell.
U.S. stocks fell Monday amid continued anxiety over the showdown in Washington. But confirmation of the shutdown overnight created few waves across global markets.
European markets were mostly higher in midday trading. Tokyo stocks closed with modest gains, while exchanges in Hong Kong and Shanghai were closed for a holiday.
Oil prices gained a penny to $102.34 U.S. a barrel
Gold prices faded $8.40 to $1,318.60 U.S. an ounce.
