Canadian stocks are poised for a higher open Tuesday amid a rebound in commodities and positive cues from the global equity markets. While most Asian markets ended higher overnight, European shares were in the green on speculation that central banks around the world will opt for monetary easing measures after the recent batch of downbeat economic data that rekindled global economic growth worries.
Meanwhile, today's data out of Europe revealed that euro zone producer prices fell 0.5 percent month-on-month in May, faster than the 0.3 percent drop predicted by economists.
U.S. stock futures were pointing to a flat open.
On Friday, the S&P/TSX Composite Index extended gains for a fourth session, adding 171.86 points or 1.50 percent to 11,596.56.
The price of crude oil was moving higher Tuesday morning amid speculation of stimulus measures from central banks. Crude for August gained $1.90 to $85.65 a barrel.
The price of gold was steady above $1,600 amid speculation that central banks will announce stimulus measures following the recent batch of weak economic data. Gold for moved up $13.90 to $1.611.60 an ounce.
In corporate news from Canada, Peyto Exploration & Development Corp (PEY.TO) said it would acquire Open Range Energy Corp (ONR.TO) on the basis of 0.0696 of its share for each Open Range common share.
Metal mining company Vaaldiam Mining Inc. (VAA.TO) said it has been acquired by BCKP Limited at a price of C$0.2649292 for each common share of Vaaldiam.
Industrial safety services company HSE Integrated Ltd. (HSL.TO) said that its shareholders have approved the acquisition of the company by DXP Enterprises, Inc. pursuant to a plan of arrangement, which was previously announced on May 1.
Catalyst Health Solutions Inc. (CHSI) announced that its stockholders approved the plan of merger with SXC Health Solutions Corp. (SXC.TO), in a cash and stock transaction valued at about $4.75 billion. Catalyst stockholders will receive $28.00 in cash without interest and 0.6606 of a share of SXC stock for each share held.
In economic news, euro zone producer prices fell 0.5 percent month-on-month in May, the latest figures released by Eurostat showed. The decline was slightly faster than the 0.3 percent drop predicted by economists. In April, the producer price index rose 0.1 percent. On an annual basis, the price index gained 2.3 percent compared to expectations for a 2.5 percent rise.
Meanwhile, consumer price inflation in the Organization for Economic Cooperation and Development (OECD) area slowed for the third consecutive month in May, latest data showed. The consumer price index increased 2.1 percent on an annual basis in May, after growing 2.5 percent in the previous month. In March and February, inflation rates were 2.7 percent and 2.8 percent respectively.
by RTT Staff Writer
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