Canadian stocks are poised for a positive open Monday amid firm energy prices and on mixed cues from the global equity markets. While Asian markets settled flat overnight, European shares were in the green supported by a report that the European Central Bank could buy bonds of euro zone countries if borrowing costs rose over certain limits to try and solve the debt crisis.
U.S. stock futures were pointing to a lower open.
On Friday, the S&P/TSX Composite Index extended gains for a fourth sessions, adding 57.30 points or 0.48 percent to 12,089.89.
The price of crude oil was extending its three-month high Monday morning after the US plans to release emergency oil reserves to control rising gasoline prices faced resistance from the International Energy Agency. Light Sweet Crude Oil (WTI) futures for October delivery, the most actively traded contract, added $0.02 to $96.34
The price of gold was moving lower Monday morning as the U.S. dollar was trading firm amid a recent batch of upbeat economic data, which have dimmed hopes for further stimulus measures from the world's biggest economy. Gold for December lost $6.00 to $1,613.40 an ounce.
In corporate news from Canada, Cenovus Energy (CVE.TO) announced the completion of public offering of $500 million of 10-year senior unsecured notes with a coupon rate of 3 percent and $750 million of 30-year senior unsecured notes with a coupon rate of 4.45 percent in the US.
Television and film productions company DHX Media Ltd. (DHX.TO) announced it would acquire the business of Cookie Jar Entertainment for about $111 million, to be paid through a combination of approximately 36 million DHX shares, $5 million in cash, and the assumption of $66 million of debt.
Oilfields services company Pure Energy Services Ltd. (PSV.TO) said it would be acquired by FMC Technologies Inc. (FTI) for C$11.00 per share in cash, or nearly C$282 million or $285 million.
In economic news, euro zone construction output declined for the third consecutive month in June, Eurostat reported. In the construction sector, seasonally adjusted production dropped 0.5 percent from a month ago, when it fell 0.2 percent. Building construction was down 0.1 percent after staying flat in May. Likewise, civil engineering fell by 0.7 percent compared to a 0.5 percent rise in the prior month
by RTT Staff Writer
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