RTTN; TSX Poised For Lower Open Amid Economic Worries - Canadian Commentary
(RTTNews) - Toronto stocks may extend losses Wednesday morning as commodities continued to level off from recent highs amid economic growth worries. Cues from the global equity markets were also discouraging with most Asian markets ending flat, while European stocks were lingering in the negative territory.
Earlier today, Moody's Investor Service said it has put Spain's Aa1 rating on review for a possible downgrade.
U.S. stock futures were pointing to a lower open.
On Tuesday, the S&P/TSX Composite Index snapped its 3-day winning streak to ease 15.77 points or 0.12% to 13,280.08.
The price of crude oil moved down Wednesday morning as traders await cues from today's economic data, including the report on U.S. weekly crude oil inventories from the EIA. Today during trading hours, the EIA will release its weekly U.S. crude oil inventories report. Analysts expect crude oil inventories to drop by 2.5 million barrels, while gasoline stocks move up by 2 million barrels. Crude for January was down $1.05 to $87.23 a barrel.
The price of gold slipped back below $1,390 after the U.S. Federal Reserve refrained from expanding the size of its bond-purchase program in its one day interest setting meet Tuesday. Golf for February lost $15.60 to $1,388.00 an ounce.
In corporate news from Canada, fertilizer maker Agrium Inc. (AGU.TO) said would sell the commodity management business of Australian grain producer AWB Ltd to Cargill, Inc. Earlier this month, Agrium acquired the division for $1.2 billion.
Pharmaceutical company Cangene Corp. (CNJ.TO) slipped into the red in first quarter, reporting net loss of $5.4 million or $0.08 per share, compared with net income of $5.3 million or $0.08 per share last year.
Forest products company Canfor Corp. (CFP.TO) said it plans C$145 million in capital pending plan for its lumber business in 2011.
Real-estate investment trust Dundee REIT (D_UN.TO) announced that it would buy Realex Properties Corp.(RP.V) shares for C$154.4 million cash. Holders of Realex common shares will receive C$8.25 per share reflecting an enterprise value of C$385 million.
Uranium miner Mantra Resources (MRL.TO, MRU.AX) said it would be acquired by ARMZ Uranium Holding Co. for A$8.00 per share via a Board recommended Scheme of Arrangement under the Australian Corporations Act. This values Mantra Resources at around A$1.16 billion. Shares of Mantra close at C$7.590 Tuesday.
In economic news, Statistics Canada said manufacturing sales increased 1.7% to C$45.5 billion in October, due to gains in petroleum products, metals and motor vehicle parts. Economists expected manufacturing sales to rise by a modest 0.8%.
