The Toronto Stock Exchange appeared headed for a slight rebound Tuesday as commodity prices regained some ground and investors awaited North American economic data a day after a U.S. congressional committee admitted there would be no deal on deficit reduction.
The Canadian dollar lost 0.11 of a cent to 96.25 cents US. as traders continued to buy up the U.S. currency. The loonie has been trading at its lowest levels since early October.
The January oil contract added 72 cents to $97.64 a barrel. The December gold contract was up $13.10 to $1,691.70 an ounce and the copper contract gained five cents to $3.35 a pound.
U.S. equity futures pushed lower in pre-market trading. Dow futures were off 23 points to 11,502 and Nasdaq futures fell 5.75 points to 2,207.75. S&P futures lost 1.4 points to 1,189.30.
Investors will be digesting Canadian data on retail trade in September as well as updated third-quarter gross domestic product figures from the U.S. and minutes from the Federal Reserve’s November meeting.
In Canadian corporate news, baked goods and grocery giant George Weston Limited (TSX:WN) reports third-quarter net earnings attributable to common shareholders of $264 million or $1.94 per share, compared with $176 million or $1.26 per share in the same 2010 period. Revenue for the three months ended Oct. 8 was $10.06 billion, up from $9.8 billion in the prior-year period.
Homburg Invest Inc. (NYSE:HII) saw its loss balloon to $70 million in the third quarter, or $1.95 per share, as the troubled Halifax-based investment company’s expenses soared faster than its revenue grew. The company, which has been in a dispute with founding shareholder Richard Homburg, is operating under court-protection from its creditors.
American markets will be operating on a very short work week because of the U.S. Thanksgiving holiday on Thursday, which could leave many investors on the sidelines. Lower volumes and the potential for increased volatility could spell more selling pressure on stock markets this week.
Stocks took a pummelling on Monday after a so-called supercommittee in Congress failed to reach a deal to cut the U.S. federal budget deficit by $1.2 trillion over 10 years. While not entirely unexpected, the failure heightened worries that political bickering _ in the U.S. and Europe _ will hurt efforts to cut debt during a period of declining economic growth.
European countries are locked in a debate over how to provide a lasting solution to their debt crisis, which is causing borrowing rates to rise to dangerous highs for ever-larger countries.
Spain’s borrowing costs soared Tuesday in an auction of short-term debt, suggesting investors remain cautious about the country’s financial future despite a convincing electoral win this week by conservatives bent on deficit-cutting austerity.
Britain’s FTSE 100 was up 0.5%, while Germany’s DAX added 0.4% and France’s CAC-40 rose 0.5%.
Egypt’s stock exchange said early Tuesday trading has been temporarily suspended amid an escalating political crisis and after the broader EGX100 index slumped 5%.
The Egyptian Exchange’s benchmark EGX30 index had fallen by over 4% so far on Tuesday, its third consecutive day of declines as protests and violence in the capital raised questions about the country’s stability days before pivotal parliamentary election.