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TSX May Struggle To Move Higher Amid Weak Global Cues - Canadian Commentary


Canadian stocks may struggle to move higher Monday morning amid mixed cues from the commodities and global equity markets. Asian markets ended down overnight on weak jobs data from the US and Inflation numbers from China European markets remain closed due to the Easter holiday.

U.S. stock futures were pointing to a sharply lower open.

On Thursday, the S&P/TSX Composite Index extended losses for a third session, dipping 75.55 points or 0.62 percent to 12,103.11.

The price of crude oil was moving lower Monday morning amid demand concerns after data showed the rate of inflation in China rose faster than expected. Also, disappointing jobs data from the US last week weighed on trader sentiment.

Consumer price inflation in China accelerated by 3.6 percent in March, up from 3.2 percent in February and came in above expectations for a 3.3 percent increase. The data dampened expectations that China will introduce fresh monetary easing measures in the near-term. Crude for May delivery lost $1.59 to $101.72 a barrel.

The price of gold was extending gains for a second session Monday morning amid a steady U.S. dollar. Gold for June gained $16.40 to $1,646.50 an ounce.

In corporate news from Canada, West Africa focused gold miner Avion Gold Corp.(AVR.TO) announce first quarter 2012 production of approximately 26,256 ounces of gold from its Tabakoto/Ségala operations in Mali, West Africa. This has set a record for the company for amount of gold produced in one quarter.

Life sciences company Warnex Inc. (WNX.TO) swung to profit in full-year 2011, reporting net earnings of C$0.5 million or C$0.01 per share compared to a net loss of C$1.7 million or C$0.03 per share the previous year.

Closed-end real estate investment trust Huntingdon Capital Corp. (HNT.TO) said it would divest 5 Ontario retail properties, including Portage Place, for about $80 million.

Specialty transportation services provider Entrec Transportation Services (ENT.V) said its has completed the acquisition of Singer Specialized Group of Companies ("SINGER"). SINGER is based in Calgary, Alberta and specializes in the transportation of over-sized equipment within the oil and gas, petro-chemical, power generation and mining industries.

by RTTNews Staff Writer

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