Canadian stocks may open higher Tuesday supported by a marginal rise in commodities amid hopes that the Federal Reserve would hint at some monetary easing measures.
Meanwhile, the Bank of Canada today left its key rates unchanged at one percent, as widely expected, and noted that global headwinds are restraining Canadian economic activity, while domestic factors are expected to support moderate growth in Canada. The Bank expects the economy to grow at a pace roughly in line with its production potential in the near term, before picking up through 2013.
U.S. stock futures were pointing to a higher open after Goldman Sachs reported earnings.
Goldman Sachs Group, Inc. (GS) said that its second-quarter net earnings decreased to $927 million, from $1.05 billion in the same quarter last year. Earnings per common share were $1.78 compared with $1.85 for the second quarter of 2011. Analysts expected the company to report earnings of $1.17 per share for the quarter.
On Monday, the S&P/TSX Composite Index edged up 6.65 points or 0.06 percent 11,521.18.
The price of crude oil was ticking higher Tuesday morning amid speculation that the Federal Reserve would hint at some monetary easing measures. Crude for August ticked up $0.44 to $88.87 a barrel.
The price of gold was little changed Tuesday morning as the U.S. dollar was mixed amid inflation report. Gold for August edged up $0.20 to $1,591.80 an ounce.
In corporate news from Canada, aerospace and industrial equipment maker Héroux-Devtek Inc. (HRX.TO) said it would be selling substantially all of its Aerostructure and Industrial Products operations to Precision Castparts Corp. (PCP) for C$300 million in cash.
Biological product company Neptune Technologies & Bioressources (NTB.TO) reported a wider first quarter net loss of $1.7 million compared to the net loss of $1.3 million in the year ago quarter.
In economic news Statistics Canada said manufacturing sales declined 0.4 percent to $48.7 billion in May, mainly due to a 9.6 percent dip in petroleum and coal product industry, reflecting temporary shutdowns at some refineries. Excluding the petroleum and coal product industry, total manufacturing sales rose 1.2 percent.
From the U.S., the Labor Department said its consumer price index came in unchanged in June following a 0.3 percent drop in May. The flat reading on consumer prices came in line with economist estimates. Excluding food and energy prices, the core consumer price index rose by 0.2 percent in June. The modest increase matched the core price growth seen in the three previous months and came in line with expectations.
From the euro zone, a measure of German investor sentiment declined for the third month in a row in July, results of a survey revealed. The ZEW Indicator of Economic Sentiment dropped to minus 19.6 points from minus 16.9 in June. That was slightly better than economists' forecast for a score of minus 20.
Meanwhile, U.K.'s annual consumer price inflation eased for a third straight month in June to the lowest level since November 2009, helped by falling fuel prices and heavy discounting to boost sales, the latest figures from the Office for National Statistics showed.
by RTT Staff Writer
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