Canadian stocks are poised for a positive open Tuesday as commodities were steady after data revealed pick-up in German economic sentiment that bolstered hopes the euro zone's biggest economy would rebound. However, big gains may be capped during the session as traders might mull European Central Banks' recent comments on the economy.
European Central Bank President Mario Draghi told European lawmakers on Monday that the economic outlook for euro zone economies remained weak at the start of 2013 but the bank expects "a gradual recovery later this year." The ECB forecasts the region's economy will shrink 0.3 per cent in 2013.
U.S. stock futures were pointing to a marginally higher open.
On Friday, the S&P/TSX Composite Index extended loses for a third session, dipping 35.16 points or 0.28 percent to 12,686.63.
The price of crude oil was little changed Tuesday morning amid a mixed U.S. dollar and on geopolitical tensions. Negotiations between Iran and major world powers over Iran's nuclear programme remain deadlocked, and investors look ahead to the next meeting on February 26 for any signs of progress.
Crude for March inched up $0.08 to $95.94 a barrel.
The price of gold was steady around its six-month low Tuesday morning on value-buying amid a mixed U.S. dollar. Gold for edged up $0.30 to $1,609.80 an ounce.
In a major M&A deal, insurance services provider Great-West Lifeco Inc. (GWO.TO) announced that it has reached an agreement with the Government of Ireland to acquire, through its subsidiary Canada Life Limited, all of the shares of Irish Life Group Limited for C$1.75 billion or 1.3 billion euros.
In other corporate news from Canada, Goldcorp. (G.TO) said that through its unit, Goldcorp USA Inc., it has received 22.06 million shares or about nearly 11.5 percent in the capital of Delta Gold Corp. according to a reverse takeover transaction.
Publishing company McGraw-Hill Ryerson (MHR.TO) reported improved fourth- quarter net income of C$4.44 million or C$2.22 per share, compared to C$2.65 million or C$1.32 per share in the same quarter last year.
Mexico focused gold-silver exploration company Kimber Resources (KBR.TO) reported wider second-quarter net loss of C$0.85 million or C$0.01 per share compared to a net loss of C$0.84 million or C$0.01 loss per share in the year ago quarter.
Open-ended trust which operates and manages automobile dealership AutoCanada Inc. (ACQ.TO) said Friday that its Board of Directors has declared a quarterly eligible dividend of C$0.18 per share, an increase of 5.8 percent from the previous quarterly dividend of C$0.17 per share.
Metals and mining company Northland Resources S.A. (NAU.TO) announced that it has received a notice from the TSX that the TSX has decided to delist the company's common shares effective at the close of market on the TSX March 18, 2013, should the company fail to meet the stocks exchange's requirements.
Precious metals miner Coeur d'Alene Mines Corp. (CDM.TO) announced that Orko Silver Corp.'s (OK.V) Board has unanimously determined that Coeur's buyout Proposal constitutes a "Superior Proposal" pursuant to its arrangement agreement with First Majestic Silver Corp. (FR.TO).
International gold miner PMI Gold Corp. (PMV.TO) and Keegan Resources Inc. (KGN.TO) announced that they have terminated the arrangement agreement entered into on December 5 to combine their respective businesses.
In economic news, Statistics Canada said non-residents reduced their holdings of Canadian securities by $1.9 billion in December, led by large retirements of bonds and equities. On the pother hand, Canadian investors added $5.5 billion of foreign securities to their portfolios, marking a fourth straight month of investment. This was the second consecutive month of a net outflow of funds in the form of securities
Separately, the agency said wholesale sales fell 0.9 percent in December to $49.0 billion, after rising 0.7 percent in November. The decrease was largely a result of lower sales in the computer and communications equipment and supplies industry.
From the euro zone, Germany's economic confidence improved strongly as financial market experts expect the situation to improve during the next months, data from the Center for European Economic Research/ZEW showed. The ZEW Indicator of Economic Sentiment rose 16.7 points to 48.2 in February. This was the third consecutive increase and the latest reading exceeded the consensus forecast of 35.
Separately, data released by statistical office Eurostat showed that euro zone's construction output decreased further in December, and at a slightly faster pace compared to the previous month. Construction production fell 4.8 percent on an annual basis in December, after falling 4.7 percent in November and 3.3 percent in October.
by RTT Staff Writer
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