Talisman in focus
Hopes that Republicans and Democrats will reach a deal on the U.S. budget as well as the debt ceiling pushed Canadian stock index futures slightly higher on Tuesday, though gains could be limited as markets remain wary of the risk of failure
The S&P/TSX composite index moved higher 29.60 to end Monday at 12,788.25, with Tuesday morning futures up 0.1%.
The Canadian dollar dipped 0.03 cents to 96.94 cents U.S. early Tuesday
Talisman Energy Inc shares surged in after-hours trading on Monday after activist investor Carl Icahn said he had purchased about 61 million shares of the underperforming Canadian oil producer and may seek a seat on the company's board.
Saputo Inc. bought Warrnambool Cheese and Butter Factory Company Holdings Ltd, potentially kick-starting a wave of foreign purchases in Australia's A$4-billion a year dairy industry.
National Bank Financial cut the price target on Exchange Income Corp. to $24 from $28 after the company announced that it expects third-quarter EBITDA to come in at about half of last year's third-quarter results due to weaker than anticipated margins.
On the economic slate, Canada Mortgage and Housing Corporation reported that Canadian housing starts rose more than expected in September.
The seasonally adjusted annualized rate of housing starts was 193,600 units last month, up from an upwardly revised 184,000 in August and surpassing analysts' expectations for 185,000.
Statistics Canada reported that out merchandise imports grew 2.1% in August, while exports were up 1.8%. As a result, Canada's trade deficit with the world went from $1.2 billion in July to $1.3 billion in August. The market call was for a negative $0.7-billion figure during the month.
ON BAYSTREET
The TSX Venture Exchange lost 7.84 points to close Monday at 947.52
ON WALLSTREET
There's a cautious mood on Wall Street as investors consider Monday's s selloff, which was led by heightened uncertainty over the U.S. debt ceiling and government shutdown.
Ahead of the opening bell, futures for the Dow Jones Industrials shed seven points to 14,844. Futures for the S&P 500 picked up 3.4 points, or 0.2%, to 1,671.10, and futures for the NASDAQ gained 7.5 points, or 0.2%, to 3,212.50
Tuesday marks the eighth day of the government's partial shutdown. In that time, the Dow has dropped 193 points.
Tuesday is also the start of third-quarter earnings season, with results due after the closing bell from aluminum producer Alcoa, along with Yum! Brands, the parent of KFC, Pizza Hut and Taco Bell.
But investors will likely remain focused on the debt drama playing out in Washington.
European markets were all moving lower in morning trading, led by declines in London's FTSE 100, while Asian markets ended with gains. The Shanghai Composite index jumped by 1% after investors returned from a long holiday.
Oil prices tacked on 58 cents to $103.61 U.S. a barrel
Gold prices subsided $5.50 to $1,319.60 U.S. an ounce.
