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TSX May Edge Up At Open On Energy Support - Canadian Commentary


Canadian stocks may struggle to move higher at open Friday as energy prices gained, while metals were moving lower as traders were concerned over the anemic global economic outlook, anxiety over U.S. budget talks and escalating violence in the Middle East. However, value buying may support stocks at bottom levels as the main index dived to a fresh three-month low in the previous session.

Asia stocks settled mixed overnight on hopes of additional easing in Japan. European stocks are extending their lean run, as Greece fights tooth and nail to secure additional funding from the Troika and domestic data point to sluggishness in the near term.

U.S. stock futures were pointing to a flat open.

On Thursday, the S&P/TSX Composite Index extended losses for a fourth session, dipping 118.41 points or 0.99 percent to 11,811.38.

The price of crude oil was moving higher Friday morning even as traders fret over demand growth amid global economic concerns and the US fiscal cliff, which would lead to tax hikes and spending cuts of about $600 billion will kick in early next year if the Congress fails to avert them. Crude for January rose $1.00 to $86.87 a barrel.

The price of gold was little changed Friday morning as downbeat euro zone macroeconomic data hurt the euro and stocks. Gold for December eased $0.20 to $1,713.60 an ounce.

In corporate news from Canada, non-hazardous solid waste collection and landfill disposal services provider Progressive Waste Solutions Ltd. (BIN.TO) said that it has acquired, through its wholly owned subsidiary Waste Services of Florida, Inc., Choice Environmental Services, Inc for cash consideration of $123.25 million

International pharmaceutical company Valeant Pharmaceuticals International, Inc. (VRX.TO) announced that it obtained FTC clearance for the proposed acquisition of Medicis Pharmaceutical Corp.

Oil and gas company Long Run Exploration (LRE.TO) said it would divest certain non-core assets including Plato / Dodsland / Lucky Hills areas of Saskatchewan, for approximately $180 million.

In economic news, Statistics Canada said foreign investment in Canadian securities gained to $13.9 billion in September, largely due to the strength of purchases of government bonds and corporate equities. Meanwhile, Canadian investment in foreign securities reached a six-month high of $6.0 billion, led by the acquisition of US equities.

Elsewhere, the euro zone trade surplus increased to EUR 9.8 billion in September, Eurostat reported. The surplus totaled EUR 5.2 billion in August and EUR 1.7 billion in September 2011. On a seasonally adjusted basis, exports dropped 1.1 percent in September month-on-month, partially offsetting a 3.3 percent rise in August. Likewise, imports slipped 2.7 percent after increasing 2.3 percent.

Meanwhile, the euro area current account surplus declined to EUR 0.8 billion in September from EUR 10.9 billion in August, the European Central Bank said.

by RTTNews Staff Writer

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