Canadian stocks are poised for a weak open Tuesday as euphoria over the Federal Reserve's stimulus pack waned and trader focus on fundamentals. Meanwhile, worries over euro zone debt situation resurfaced amid uncertainty about Spain's desire for an international aid package. Analysts opine that the delaying tactics by Span to opt for financial aid could put upward pressure on yields.
U.S. stock futures were pointing to a lower open.
On Monday, the S&P/TSX Composite Index snapped its four-session winning streak to shed 52.61 points or 0.42 percent to 12,446.86.
The price of crude oil was extending losses Tuesday morning on demand concerns amid reports that Saudi Arabia is pumping at high rates to dampen prices. Yesterday, oil dropped dramatically in the last few minutes of regular trade to end sharply lower amid rumors of oil release from the Strategic Petroleum Reserve after prices galloped following the Federal Reserve announcement of additional quantitative easing measures last week. Crude for October was down $0.69 to $95.93 a barrel.
The price of gold was paring recent gains Tuesday morning on profit taking after an impressive run last week with the Federal Reserve announcing new quantitative easing measures. Gold for December lost $5.10 to $1,765.50 an ounce.
In corporate news from Canada, Bombardier Transportation (BBD_A.TO, BBD_B.TO) said it signed $367 million contracts with Talgo SA to develop and supply components for 36 very high speed trains for Saudi Arabia.
Coal miner SouthGobi Resources (SGQ.TO) announced Ross Tromans as its chief executive officer and president with immediate effect.
Electronic equipment maker Dynetek Industries Ltd.(DNK.TO) announced that it has been fully acquired by Luxfer Holdings Plc has acquired, through its wholly-owned subsidiary Luxfer Canada Limited.
In economic new from the euro zone, Germany's economic sentiment improved in September after easing for four straight months, the Mannheim-based ZEW said. The ZEW Indicator of Economic Sentiment rose 7.3 points to -18.2. However, the negative reading indicates that the financial market experts expect the German economy to lose momentum over the next six months.
Meanwhile, a survey report from the Office for National Statistics revealed that house price inflation in the U.K. eased more than expected in July. The ONS house price index rose 2 percent year-on-year in July, slower than 2.3 percent gain in June. This was also weaker than the 2.1 percent rise forecast by economists.
by RTT Staff Writer
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