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TSX May Open Mixed; BoC Holds Rate Steady Toronto stocks are poised for a mixed open Tuesday amid easing commodities prices and increased worries over the nuclear situation in Japan. Meanwhile, the Bank of Canada today held its interest rates steady, as widely expected, and said it projects the economy to expand by 2.9 percent in 2011 and 2.6 percent in 2012. The bank added that the global economic recovery is expected to continue at a steady pace, but the disasters that struck Japan will severely affect its economic activity in the first half of 2011 and create short-term disruptions to supply chains in advanced economies. Elsewhere, the Japanese nuclear energy department today raised the severity of the nuclear threats to a rating of seven from five, matching with the Chernobyl nuclear disaster in 1986. U.S. stock futures were pointing to a lower open. On Monday, the S&P/TSX Composite Index shed 211.57 points or 1.49 percent to 13,996.86 to settle below the 14,000-mark for the first time in two weeks. Crude oil extended losses for a second session Tuesday morning amid reports of a peace plan in Libya. Earlier today, the IEA said it maintains its 2011 global oil demand growth forecast but noted that high oil prices started denting demand growth, citing its preliminary data for January and February. The IEA, in its monthly Oil Market Report released today, held its 2011 global oil product demand growth at 1.4 mbd. Higher anticipated post-earthquake Japanese oil use for power generation and reconstruction offsets downward non-OECD adjustments, the agency added. Crude for May delivery was down $0.58 to $109.34 a barrel. The price of gold continued to retreat from its record peak for a second session Tuesday morning amid a mixed U.S. dollar. Gold for June edged down $1.0 to $1,467.10 an ounce. In corporate news from Canada, apparel maker Gildan Activewear said it would buy U.S. sock maker Gold Toe Moretz Holdings Corp. for $350 million, to double its revenues from the sale of socks. Silver streaming company Silver Wheaton announced that Randy Smallwood, currently the President, has been appointed CEO to replace Peter Barnes, who has resigned effective April 11, 2011. Pharmacy benefit management services provider SXC Health Solutions said it would acquire substantially all of the assets of MedMetrics Health Partners, Inc., the full-service PBM subsidiary of Public Sector Partners, Inc. Integrated energy company Husky Energy announced that its Lloydminster heavy oil upgrader has returned to near normal operation after a fire on February 02 hampered at least 50 percent of its output. Bio-pharmaceutical company Lorus Therapeutics posted third-quarter net loss of C$1.58 million, wider than C$1.34 million last year. Loss per share was C$0.10, narrower than C$0.14 in the same quarter last year. In economic news, Statistics Canada said the nation's trade surplus unexpectedly dipped to C$33 million in February from C$382 million in January, as exports fell at a faster pace than imports. Separately, the agency revealed that its New Housing Price Index (NHPI) jumped 0.4 percent in February, extending a 0.2 percent advance in January. Year over year, the NHPI was up 2.1 percent in February following a 1.9 percent increase in January. From south of the border, the U.S. Commerce Department said the trade deficit narrowed to $45.8 billion in February from a revised $47 billion in January. Economists had expected the deficit to narrow to $44 billion from the $46.3 billion originally reported for the previous month. |
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