TSX Poised For A Mixed Open WednesdayToronto stocks are poised for a mixed open Wednesday amid easing energy prices and weak cues from the global equity markets. Traders might also play the 'wait and watch' game ahead of an interest rate decision from the FOMC due out later in the day.
Meanwhile, stocks across Asia and Europe fell Wednesday amid concerns over global economic growth. European financial stocks were under pressure after French bank Credit Agricole trimmed earnings outlook for its Greek unit, Emporiki.
Earlier Tuesday, a Fitch rating downgrade of French bank BNP Paribas and a surprise decline in existing home sales in the U.S. in May sent equities lower.
On Tuesday, the S&P/TSX Composite Index lost 138.14 points or 1.16% to 11,797.94, after ending with marginal changes in the past four sessions.
The price of crude oil eased for a second session, with crude for August delivery slipping $0.49 to $77.36 a barrel. Traders turned cautious ahead of the outcome of two-day long FOMC meeting and the new home sales data.
Meanwhile, the price of gold edged up $3.70 to $1,244.50 an ounce.
In international M&A news, Germany based chemical company BASF said it will acquire Cognis, a supplier of raw materials, for $858 million in cash.
In Canadian corporate news, gold mining company Royal Gold announced pricing of public offering of 5.2 million common shares at $48.50 per share.
Precious metals explorer Paramount Gold and Silver said it has agreed to acquire X-Cal Resources Ltd. for about C$31.8 million. Under the agreement, eight X-Cal shares will be exchanged for one Paramount share. Shares of X-Cal rallied 38% in the previous session.
Base metals miner HudBay Minerals said it found notable amounts of gold, silver, copper and zinc at the Lalor deposit near Snow Lake.
Oil and gas explorer Pacific Rubilaes Energy said it has been awarded six new land blocks in Colombia.
Oil exploration company, Petrominerales said it has been awarded two more blocks in Llano Basin, Colombia, taking its exploration blocks in Colombia to 17.
Merchant banker Clairvest Group reported lower fourth quarter net income of C$0.11 per share, compared to C$0.23 per share for the year-ago quarter.
In economic news, Statistics Canada said retail sales in the nation decreased 2.0% in current dollars to C$36.20 billion in April after gaining 2.1% in March. Economists were expecting retail sales to fall only 0.4% in April.
Decline in sales were recorded across sectors and provinces. Among sectors, sales of motor vehicle and parts declined 4.8% and clothing and accessories saw sales dip by 5.2% in April.Yesterday, Statistics Canada said the consumer prices index (CPI) rose 1.4% year-over-year in May following a 1.8% increase in April. Economists were expecting CPI to rise to 1.3% year-over-year in May.
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