Canadian stocks are poised for a mixed open Tuesday amid escalating concerns over the euro zone financial situation as investors fret over the possibility of a Spanish sovereign bailout. Adding to the worries, Moody's Investors Service downgraded its rating outlook on Germany, the Netherlands and Luxembourg to 'negative' from 'stable' due to intensified uncertainty regarding the outcome of the debt crisis.
U.S. stock futures were pointing to a lower open.
On Monday, the S&P/TSX Composite Index extended losses for a second session, dipping 77.37 points or 0.67 percent to 11,545.54.
The price of crude oil was ticking lower Tuesday morning as lingering euro zone worries overshadowed data out of China that revealed minor recovery in the nation's manufacturing sector. Preliminary results of HSBC's monthly survey of manufacturers revealed the contraction in Chinese manufacturing eased in July, with the .Purchasing Managers' Index rising to 49.5 from 48.2. Crude for September was down $0.60 to $87.54 a barrel.
The price of gold was ticking lower Tuesday morning as the euro was struggling after data out of the euro zone revealed contraction in private sector activity. Gold for August shed $4.10 to $1,573.30 an ounce.
In corporate news from Canada, coal miner CIC Energy Corp. (ELC.TO) said it would be acquired by India-based Jindal Steel & Power Ltd in exchange of C$2.00 per share, representing just over 25 percent premium to its latest closing price.
Communications and media company Rogers Communications Inc. (RCI_A.TO, RCI_B.TO) reported a marginally lower second-quarter net income of C$400 million or C$0.75 per share compared to C$410 million or C$0.74 per share in the same quarter last year. Excluding items, adjusted net income from continuing operations grew to C$478 million or C$0.91 per share from C$469 million or C$0.85 per share in the year-ago quarter. Analysts were expecting the company to report earnings of C$0.86 per share for the quarter.
International gold miner Eldorado Gold Corp. (ELD.TO) announced that Greece lawmakers revoked the "Provisional Order" issued on June 29, 2012, which temporarily suspended the surface clearing activities of Hellas Gold S.A., a 95 percent owned unit of Eldorado, in Halkidiki, Greece.
Healthcare services provider Centric Health Corp. (CHH.TO) announced that it has appointed David Cutler as its President and Chief Executive Officer. Cutler will assume his responsibilities during September 2012.
In economic news, Statistics Canada said retail sales rose 0.3 percent to $38.9 billion in May, missing economists estimates for a 0.5 percent growth. Gains were reported in 6 of 11 sub-sectors, representing 53 percent of retail trade. Overall, retail sales have been relatively flat since November 2011. In volume terms, retail sales rose 0.7 percent.
Elsewhere, the euro zone private sector economy contracted for the tenth time in the last eleven months, with the rate of decline unchanged on June, Markit Economics said. The flash composite Purchasing Managers' Index remained unchanged at 46.4 and matched the consensus forecast. A reading below 50 suggests contraction in the sector.
Further, Germany's private sector continued to shrink in July, marking the weakest performance since June 2009, Markit Economics said. The flash composite output index fell for the sixth month running in July, to 47.3 from 48.1 in June. The index has posted reading below 50 in each month since May.
by RTT Staff Writer
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