Canadian stocks may tick lower at open Wednesday, after recording big gains in the previous session, as commodities were retreating from recent highs on profit taking. Meanwhile, cues from the global equity markets came in mixed, with most Asian markets settling higher overnight and European shares lingering in the red. U.S. markets remained closed for Independence day holiday.
On Tuesday, the S&P/TSX Composite Index rallied to settle at a two-month high, adding252.19 points or 2.18 percent to 11,848.75.
In the commodities market, the price of crude oil retreated from its one-month high on profit taking, with crude for August losing $0.63 to $87.03 a barrel.
The price of gold was moving lower, with gold for August delivery shedding $5.20 to $1,616.60 an ounce.
In corporate news from Canada, silver miner First Majestic Silver (FR.TO) said it has completed the acquisition of Silvermex Resources Inc. (SLX.TO) in exchange of 0.0355 shares and C$0.0001 for each share of Silvermex.
Surgical and Medical Instrument maker Intellipharmaceutics International Inc. (I.TO) reported a second-quarter net loss of $1.4 million or $0.08 per share, narrower than the net loss of $2.0 million or $0.12 per share in the comparable quarter last year.
Oil and gas industry services provider Gibson Energy Inc. (GEI.TO) said it is not in a position to sanction the expansion plans for the Moose Jaw Facility due to uncertainty around capital cost estimates and continued pressure on the construction industry in western Canada.
Agriculture and construction equipments dealer Rocky Mountain Dealerships Inc.(RME.TO) said it has purchased 100 percent of the issued and outstanding shares of Camrose Farm Equipment Ltd, a dealer of agriculture equipments, for a cash consideration of $5.7 million.
In economic news, the latest figures from Eurostat showed that retail sales in the euro zone increased unexpectedly in May, partly reversing previous month's decline. Retail sales rose 0.6 percent month-on-month in May. Economists expected no change in the retail trade volume during the month
Contraction in German private sector activity in June deepened more than estimated earlier, detailed results of a survey by Markit Economics revealed. The composite output index, that measures the performance of both manufacturing and service sectors, fell to 48.1 in June from 49.3 in May.
Meanwhile, the British service sector expanded at the slowest pace in eight months in June, and the rate of growth missed economists' expectations, data from a survey by Markit Economics and the Chartered Institute of Purchasing & Supply (CIPS) showed. The seasonally adjusted purchasing managers' index (PMI) for the service sector dropped to 51.3 in June from 53.3 in May, hitting the lowest level since last October. A PMI reading above 50 suggests expansion in the sector, while one below indicates contraction. The sector posted growth for the eighteenth consecutive month.
by RTT Staff Writer
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