Canadian stocks are poised for a mixed open Tuesday as investors monitor the euro zone debt situation and Spanish and Italian bond yields. Also, focus is on Greece as the country goes to the polls next Sunday and the outcome will determine if the nation would stick with the euro currency.
Meanwhile, commodities were struggling to move higher with gold lingering below $1,600 an ounce and crude oil trading flat around $83.
U.S. stock futures were pointing to a marginally higher open.
On Monday, the S&P/TSX Composite Index extended losses for a third session, dipping 98.85 points or 0.86 percent to 11,401.78.
The price of crude oil was little changed, after three loss making sessions, as traders were concerned over demand growth. The Organization of the Petroleum Exporting Countries, in its monthly oil market report released today, maintained its world oil demand growth forecast for 2012 but cautioned that economic developments world-wide had placed a great amount of uncertainty on oil demand. Crude for July edged up $0.03 to $82.73 a barrel.
The price of gold was ticking lower Tuesday morning amid a generally weak dollar and on lack of cues from both sides of the Atlantic. Gold for August shed $4.90 to $1,591.90 an ounce.
In corporate news from Canada, fertilizer maker Agrium Inc. (AGU.TO) said it expects first-half earnings to be near or at the top end of guidance range of $5.50 to $6.10 per share. Analysts currently estimate earnings of $4.57 per share for the second quarter.
Grain handler Viterra Inc. (VT.TO), which is being bought by Swiss commodities trader Glencore International Plc in a C$6.1 billion deal, said its second quarter net earnings more than doubled to C$67.11 million from C$30.16 million in the prior year. On a per share basis, earnings climbed to or C$0.18 per share from or C$0.08 per share. Analysts were expecting the company to report earnings of C$0.11 per share for the quarter.
In economic news from south of the border, the Labor Department said U.S. import prices fell sharply in May, while prices of U.S. exported goods fell for the first time in 2012. The overall price index for U.S. imports fell by 1 percent in May, marking the largest single month drop since June 2010. Most economists, however, had expected a somewhat higher, 1.1 percent decline in the costs of imported goods.
From the euro zone, U.K. manufacturing output dipped 0.7 percent month-on-month in April, reversing March's 0.9 percent rise, the Office for National Statistics said. The decline far exceeded economists' forecast of 0.1 percent fall. At the same time, industrial production remained flat on month versus a 0.3 percent fall in the prior month. Economists were forecasting a 0.1 percent rise for April.
by RTT Staff Writer
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