Canadian stocks may open lower Monday as risk appetite waned on concerns over the euro zone financial situation after Spanish 10-year bond yields surged to new euro area highs, surpassing the 7 percent-mark. While most Asian markets ended lower, European shares were lingering in the red amid speculation that Spain will need to be bailed out.
However, oil and gas company Nexen Inc. may attract buyers at open after CNOOC announced that it would buy Nexen at a hefty premium to its current market price.
U.S. stock futures were pointing to a sharply lower open.
On Friday, the S&P/TSX Composite Index snapped its five-session winning streak to shed 42.79 points or 0.37 percent to 11,622.91.
The price of crude oil was paring recent gains Monday morning after China's central bank hinted that its economy will continue to decline over the third quarter of this year. Last week, oil settled sharply higher on geopolitical issues as traders viewed the tension build-up in the Middle East between Iran and Israel, and in Syria, could possibly disrupt oil supplies from the region. Oil prices were also supported by a weakening dollar and lower U.S. crude stockpiles. Crude for September delivery lost $3.71 to $88.12 a barrel.
The price of gold was moving lower Monday morning amid worries over the euro zone financial situation after Spanish 10-year bond yields surged to new euro area highs. Gold for August was down $18.40 to $1,564.40 an ounce.
In corporate news from Canada, Chinese oil major CNOOC Ltd. (CEO) said it would acquire Nexen Inc. (NXY.TO) for $27.50 per share in cash, a premium of 61 percent to the closing price of Nexen's common shares on the NYSE on July 20, 2012.
Global, upstream oil and gas company Talisman Energy (TLM.TO) said it would divest a 49 percent equity interest in Talisman's UK North Sea business, Talisman Energy (UK) Ltd. to Sinopec International Petroleum Exploration and Production Corp. for $1.5 billion.
Oilfield services firm Halliburton Co. ( HAL.TO) reported second quarter net income of $737 million or $0.79 per share compared to $739 million or $0.80 per share in the prior-year quarter. Analysts were expecting the company to report earnings of $0.75 per share for the quarter.
Building construction company Churchill Corp. (CUQ.TO) reported preliminary estimates for 2012 second quarter revenue, EBITDA and net loss. For the second quarter of 2012, revenue is estimated to lie between C$292 million and C$298 million,
Pharmaceuticals company Trimel Pharmaceuticals Corp. (TRL.TO) announced the completion of enrolment and randomization of 304 patients in the Phase III clinical trial evaluating CompleoTRT in patients with male hypogonadism.
by RTT Staff Writer
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