Canadian stocks are poised for a lower open Tuesday as commodities fell on concerns that U.S. Federal Reserve may scale back its aggressive monetary policies, after the Bank of Japan earlier today opted not to extend its stimulus program.
The Bank of Japan refrained from announcing any new steps to contain bond market volatility. Policymakers decided to continue to target an expansion of monetary base at an annual pace of 60 to 70 trillion yen, as announced in April. Meanwhile, the central bank upgraded its view of the economy.
U.S. stock futures were pointing to a sharply lower open.
On Monday, the S&P/TSX Composite Index snapped its six-session losing streak to edge up 9.37 points or 0.08 percent to 12,382.67.
The price of crude oil was moving lower Tuesday morning amid speculation that U.S. Federal Reserve might scale back its aggressive monetary policies, after the Bank of Japan earlier today opted not to extend its stimulus program. Crude for July shed $1.31 to $94.46 a barrel.
The price of gold was moving lower Tuesday morning after the Bank of Japan opted not to extend its stimulus program, raising speculation that the Federal Reserve may cut back its monetary easing measures in the near future. Gold for August lost $16.30 to $1,369.70 an ounce.
In corporate news from Canada, yoga-wear maker lululemon athletica inc. (LLL.TO) reported a marginally higher first quarter net income of $47.3 million or $0.32 per share compared to $46.6 million or $0.32 per share for the year-ago quarter. Analysts expected the company to earn $0.32 per share for the first quarter. Looking forward to the second quarter, the company forecasts net revenue of $340 million to $345 million and earnings of $0.33 to $0.35 per share. Analysts currently expect the company to earn $0.33 per share on revenue of $328.88 million for the second quarter. Additionally, lululemon said that its Chief Executive Officer Christine Day will step down after a five and half year tenure.
Energy producer Encana Corp. (ECA.TO) has appointed Doug Suttles as its President & Chief Executive and a director of the company. Suttles, with 30 years of oil and gas leadership experience, has served most recently as Chief Operating Officer of BP Exploration & Production.
Commercial real estate owner, operator and investor Brookfield Property Partners, L.P. (BPY_UN.TO) announced the acquisition of EZW Gazeley Ltd from Economic Zones World, part of Dubai World. Pursuant to the acquisition, Brookfield Property Partners will own an approximate 30 percent interest in Gazeley.
Health insurer Cigna Corp. (CI) entered into a ten-year deal with pharmacy benefit manager Catamaran Corp. (CTRX, CCT.TO). Yesterday, shares of Catamaran gained 14 percent in extended trades following the announcement.
In economic news, U.K. industrial production registered a slight 0.1 percent increase in April from March, data published by the Office for National Statistics showed. April's increase follows a 0.7 percent rise in March and 0.9 percent growth in February. Economists had forecast nil growth for April.
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