Source: The Canadian Press
The Toronto stock market was poised to open relatively flat Monday as investors digested news that Ireland has applied for a massive emergency loan, and commodities remained little changed.
The Canadian dollar rose to 98.4 cents U.S. even as the greenback edged higher against European currencies.
U.S. futures markets made early gains following Ireland’s application for financial aid from its European neighbours. However, those gains were soon erased with Dow Jones futures down 29 points to 11,150 and Nasdaq futures down 1.5 points to 2132 and the S&P 500 futures down 3.5 points to 1194.70.
European stocks and the euro currency got early boosts Monday and Asian stock markets closed mostly higher as investors were calmed after Ireland accepted some sort of aid package, expected to be worth no less than 100 billion euros, or US$137 billion.
The Irish government confirmed Sunday it is formally requesting a financial aid package to shore up its debt-laden banking sector. The actual details are expected to be released later in the week following talks between the Irish government and officials from the European Union and the International Monetary Fund.
The country will likely be forced to make further massive spending cuts and raise its very low rate of corporate tax.
However, investor uncertainty still lurks due to questions over whether the Irish austerity program will work and as eyes turn to whether other highly indebted euro countries — particularly Portugal — will be next.
Meanwhile, commodity prices were slightly lower as efforts by China to tighten monetary policy, such as higher bank reserve requirements, weighed the new January crude contract down 10 cents US$81.88 a barrel on the New York Mercantile Exchange.
The December copper contract on the Nymex slipped four cents to US$3.80 while the December gold contract gained 50 cents to US$1352.80.
Developments in Ireland will likely dominate market activity on what could be an otherwise quiet week as the U.S. markets effectively shut down mid week as traders take a Thanksgiving break.
Reports set to be released Tuesday and Wednesday include the Canadian consumer price index for October and retail sales for September. In the U.S. reports this week include October home sales, an update of consumer sentiment, and revisions to earlier estimates of the third-quarter gross domestic product.
In Canada, technology licensing company Wi-LAN Inc. (TSX:WIN) says it has initiated a lawsuit against Comcast Corp., Time Warner Cable Inc., and Charter Communications, claiming that each violates one of its patents in its cable systems and cable modem products.
Spectral Diagnostics Inc. (TSX:SDI) has signed a long-term, exclusive agreement with Toray Industries Inc. to market and sell Toraymyxin, a treatment for sepsis, in Canada. Financial details were not disclosed.
In Europe, the FTSE 100 index of leading British shares was down 0.2% while France’s CAC-40 fell 0.1%. Germany’s DAX remained in positive territory up 0.2%.
Japan’s Nikkei 225 stock average closed 0.9% higher.
Toronto stock market poised to open relatively flat after Ireland accepts bailout
Overseas markets rise as investors calmed
- By: Sunny Freeman
- November 22, 2010 December 14, 2017
- 08:40