The Toronto stock market headed for a sharply lower open Monday as traders avoided risky assets such as equities in the wake of Russia’s incursion into Ukraine’s Crimean peninsula.
The S&P/TSX composite index was down 5.15 points to end Friday, the week and month at 14,209.59
The Canadian dollar slipped 0.10 cents U.S. early Monday to 90.16 cents U.S., after Russia took effective control of the Crimean peninsula without firing a shot, calling it a necessary protection for the country’s citizens living there.
On the earnings front, Magna International Inc. said quarterly net earnings rose 31 per cent from a year ago to $458 million U.S. or $2.03 as sales jumped 14% from a year earlier to $9.17 U.S. Magna’s adjusted earnings totaled $607 million, up from $387 million a year earlier. The company also raised its quarterly dividend by 19% to 38 cents per share.
Major Drilling Group International Inc. reported a net loss of $12.8 million, or 16 cents per share, up from $4.2 million or five cents per share a year earlier. Revenue fell to $71.8 million, down from $123.2 million a year earlier as major customers put off decisions on their 2014 exploration programs.
On the economic slate, Statistics Canada reported this morning that its industrial products price index rose 1.4% in January, on the back of higher prices for energy and petroleum products. The Raw Materials Price Index increased 2.6% in the same month, as a result of higher prices for crude energy products.
ON BAYSTREET
The TSX Venture Exchange gained 6.70 points Friday to 1,026.13.
ON WALLSTREET
Escalating tensions in Ukraine are rattling world markets, pushing global stocks down and sending U.S. stock futures lower.
Ahead of the opening bell, futures for the Dow Jones Industrials tumbled 115 points, or 0.7%, to 16,192. Futures for the S&P 500 dipped 15.70 points, or 0.9%, to 1,841.90, and futures for the NASDAQ fell back 30.50 points, or 0.8%, at 3,664.75.
In company news, Men's Wearhouse said Monday that it has entered into merger talks with its rival retailer Jos. A. Bank
Looking ahead to the economic announcements of the day, the U.S. government will release January numbers on personal income and spending this morning.
The Institute for Supply Management's monthly index on the U.S. manufacturing sector will be released at 10 a.m. February auto sales will come throughout the morning from the major carmakers.
On the corporate front, 3-D printer company Stratasys will report earnings before the open and SolarCity will report after the close.
Russia has moved forward with military intervention in Ukraine, and Ukraine's new leaders are accusing Russia of declaring war, despite threats of serious sanctions against Russia from the U.S. and Europe.
All the major European stock markets were tumbling in midday trading, with Germany's Dax down by more than 3%. France's CAC 40 was declining by 2.4% and London's FTSE 100 was off by roughly 2%.
There was also plenty of red in Asian stock markets. Hong Kong's Hang Seng index closed 1.5% lower and Tokyo's Nikkei 225 dropped 1.3%. Stocks in Shanghai and Shenzhen bucked the trend and moved higher.
Oil prices spiked $2.29 to $104.88 U.S. a barrel
Gold prices gained $25.20 to $1,346.80U.S. an ounce.
