Canadian stocks are poised for a flat open Monday as commodities were struggling for direction amid expectations for further monetary easing measures by policymakers on both sides of the Atlantic. Traders hopes for additional stimulus measures increased after assurances from German Chancellor Angela Merkel and French President Francois Hollande to extend support to the euro at any cost, which came in close on the heels of a similar pledge from European Central Bank President Mario Draghi.
U.S stock futures were pointing to a flat open.
On Friday, the S&P/TSX Composite Index extended gains for a third session, adding 126.61 points or 1.09 percent to 11,766.36.
The price of crude oil was moving lower Monday morning even as traders speculate further monetary easing measures by policymakers to boost the ailing euro zone and US economy. Crude for September delivery eased $0.68 to $89.44 a barrel.
The price of gold was steady even as the euro eased on profit taking after recent smart gains. Traders await cues from this week's economic data and the outcome of FOMC meeting. Gold for December delivery, the most actively traded contract edged down $2.10 to $1,620.60 an ounce.
In corporate news from Canada, crude petroleum and natural gas company Canadian Oil Sands Ltd. (COS.TO) reported a sharply lower second quarter net income of $101 million or $0.21 per share compared to $346 million or $0.71 per share last year.
Oil and gas company Tethys Petroleum Ltd. (TPL.TO) announced the appointment of Julian Hammond to Chief Executive Officer and President with immediate effect.
Metals miner U.S. Silver Corp. (USA.TO) recommended its shareholders to reject the unsolicited cash offer from Hecla Mining Co.(HL) to acquire all of the outstanding common shares of U.S. Silver for C$1.80 per share.
In economic news, euro zone economic sentiment deteriorated in July due to lower confidence in all sectors, survey data from the European Commission showed. The economic sentiment index came in at 87.9, down from 89.9 a month ago. The reading was also below expectations of 88.9.
Elsewhere, the Spanish economy contracted 0.4 percent quarter-on-quarter in the second quarter, in line with Bank of Spain estimates, the latest figures from the statistical office INE showed Separately, the statistical office said Spain's harmonized inflation rose to 2.2 percent in July from 1.8 percent in June.
by RTT Staff Writer
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