Source: The Canadian Press

The Toronto stock market could be in for a weak open Monday as investors digest an agreement from the Group of 20 nations to reduce their deficits.

The world’s most powerful leaders emerged from the G20 Summit in Toronto with an agreement for advanced economies to cut their deficits in half by 2013 and stabilize their debt loads by 2016

The Canadian dollar rose 0.13 of a cent to 96.66 cents US.

U.S. futures pointed to a slightly higher open as the Dow Jones industrial futures gained seven points to 10,111, the Nasdaq futures were up 4.5 points to 1,843.75 while the S&P 500 futures were ahead two points to 1,076.7.

The TSX could find some downward pressure from commodities as the August crude contract on the New York Mercantile Exchange declined 59 cents to US$78.27 a barrel.

The July copper contract on the Nymex was off a penny to US$3.08 a pound while August bullion in New York faded 20 cents to US$1,256 an ounce.

The G20 communique also commits emerging countries to greater exchange rate flexibility, although it doesn’t mention China by name. The United States, Europe and Canada have pleaded with China to allow its exchange rate to fluctuate more freely, and to implement measures that would encourage Chinese people to save less and spend more.

The likely weak start to the trading week follows a negative week that saw the TSX fall 2.1% and the Dow industrials gave back 2.9% as worries mount about the strength of the economic rebound.

Investors are hoping for reassurance on the U.S. recovery this coming week from the Institute for Supply Management’s latest reading on the manufacturing sector due Thursday. And on Friday, the Labour Department releases the June non-farm payrolls report.

Economists are looking for a drop of 200,000 employees, reflecting the termination of thousands of temporary workers taken on for the U.S. census. Still, economists expect the private sector created about 50,000 jobs during June.

Meanwhile, the U.S. Conference Board releases its latest reading on American consumer confidence Tuesday.

In corporate news, Boyd Group Income Fund (TSX:BYD.UN), Canada’s largest auto body repair company, said it has struck a definitive agreement to acquire True2Form Collision Repair Centers Inc., a U.S. company with 37 shops in four states for US$18 million. Boyd said the acquisition is expected to immediately boost the fund’s distributable cash per unit.

In overseas trading, Britain’s FTSE 100 stock index was up 0.32%, Germany’s DAX was 1.19% higher while France’s CAC-40 was up 1.08%.

In Asia, Hong Kong’s Hang Seng index climbed 0.2% and benchmarks in South Korea, Taiwan, India, Indonesia and Singapore also posted mild gains.

Elsewhere, Japan’s Nikkei 225 stock average fell 0.3%.