Canadian stocks are poised for a steady open Tuesday amid firm commodities and mixed cues from the global equity markets. World stock markets were down with most Asian markets settling lower overnight and European shares were lingering in the red amid Moody's downgrade.
Moody's Investors Service has downgraded the credit outlook on the European Union's AAA rating to 'negative' from 'stable', reflecting the negative outlooks on EU's triple-A rated budget contributors.
U.S. stock futures were pointing to a flat open.
On Friday, the S&P/TSX Composite Index snapped its four-session losing streak to add 62.60 points or 0.53 percent to 11,949.26.
The price of crude oil was steady near $97 Tuesday morning amid speculation that the Federal Reserve will opt for further monetary easing measures. Crude for October gained $0.29 to $96.76 a barrel.
The price of gold extending gains as the U.S. dollar was trading weak versus a basket of currencies amid stimulus hopes. Gold for December advanced $8.70 to $1,696.30 an ounce.
In corporate news from Canada, Barrick Gold (ABX.TO) announced that its subsidiary African Barrick Gold Plc (ABG.L) has formed a Transaction Committee for its stake sale talks with China Gold
Bombardier Aerospace of Bombardier Inc. (BBD_B.TO) announced that Warsaw-based Eurolot has converted options on six Q400 NextGen airliners to a firm order that will increase its fleet to 14 Q400 NextGen aircraft. The transaction is valued at around $190 million.
Investment dealer Canaccord Financial Inc.(CF.TO) said that it appointed Alexis Rosnay as chief executive officer and a director of Canaccord Genuity Ltd, Canaccord's UK and European operations, effective September 5.
Asset management company Onex Corp. (OCX.TO) said it would acquire SGS International Inc. (SGSI) for $813 million
Manufacturer of aerospace products Héroux-Devtek Inc. (HRX.TO) said that it has sold its Aerostructure and Industrial Products operations to Precision Castparts Corp. (PCP), for a cash consideration of $300.0 million.
Oil company Twin Butte Energy (TBE.TO), said it would buy Waseca Energy Inc, a private heavy oil producing company, for a total consideration of nearly $127 million.
Bar-code scanners and walkie-talkie maker Motorola Solutions, Inc. (MSI) said that it has received Canadian clearance for its $200 million offer to buy Psion Plc. (PON.L).
In economic news from the Europe, output price inflation in the euro area remained unchanged in July, but exceeded economists' expectations, data released by statistical office Eurostat showed. The producer price index rose 1.8 percent year-on-year in July, same as in the previous month. Economists had forecast a slower growth of 1.6 percent.
Switzerland economy contracted modestly in the second quarter, defying economists' forecast for an expansion, latest figures from the State Secretariat For Economic Affairs showed. Gross domestic product (GDP) decreased a seasonally adjusted 0.1 percent quarter-over-quarter, reversing the 0.5 percent growth recorded in the first quarter, which was revised down from 0.7 percent. Economists had forecast the economy to grow by 0.2 percent.
by RTT Staff Writer
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