Stock market outlook slack
Wall Street stock index futures pointed to a negative opening while Bay Street awaited earnings reports from the big Canadian banks – expected to be generally soft, hurt by credit-market setbacks.
In other top Canadian business news, BCE Inc. (TSX: BCE) has been granted a quick hearing by the Supreme Court of Canada on a Quebec court decision that has jeopardized Canada's largest corporate takeover. The Supreme Court has not decided whether to hear the case, but granted BCE an expedited process.
Wall Street's outlook was glum as traders returned from the Memorial Day long weekend, ahead of data on consumer confidence, which appears profoundly shaken, and U.S. home prices, estimated to be down almost 15 per cent from a year ago.
Investors in U.S. equity markets are anxious about the impact of soaring energy and food prices on consumers, who account for more than two-thirds of American economic activity.
Tuesday's market unease follows losses on Wall Street last week, with the Dow Jones industrial average falling 3.9 per cent in its worst week since February.
The Toronto stock market's main index continues to draw support from the energy sector, as the near-month crude oil contract price has firmed around US$133 a barrel.
Crude was at $133.27 a barrel early Tuesday, up by $1.08 from Friday's settle.
The S&P/TSX composite index edged up 35.21 points to 14,758.57 on Monday, in light trading with New York markets closed, as the energy sector gained 0.6 per cent.
The Canadian dollar opened Tuesday at 100.99 cents US, up 0.18 cent.
Asian stock markets were generally higher Tuesday, reviving from Monday's losses as traders bought shares in banking, insurance and energy companies.
However, "investor sentiment is weak as the outlook for Wall Street is still uncertain," said Jackson Wong, investment manager at Tanrich Securities in Hong Kong.
The Hang Seng index improved 0.6 per cent to 24,282.04 after shedding nearly 1,500 points over the last week payday loans. Mainland stocks also climbed, with the Shanghai Composite Index up 0.3 per cent to 3,375.4.
Japan's benchmark Nikkei 225 index rose 1.5 per cent to 13,893.31, after a two per cent slide Monday, with Toyota and Honda regaining strength.
But Britain's FTSE 100 was off 0.5 per cent near midday in London while Germany's DAX index declined 0.4 per cent and the Paris CAC-40 was down 0.8 per cent.
Filed under: economics by TheDoor