News Column

Canadian Stocks Seen Flat After Mixed China Data -- Canadian Commentary

June 3, 2014



WASHINGTON (Alliance News) - Canadian stocks are likely to open on a quiet note Tuesday, following a mixed batch of economic data from China.

Factory data from the US could also give some cues for the market. However, with commodity prices staying sluggish, shares from energy and gold sections are likely to turn in another mixed performance.

On Monday, the S&P/TSX Composite Index ended up 76.60 points or 0.52% at 14,680.76, its best level of the day.

In corporate news, Hudson's Bay Company (HBC.TO) reported first-quarter earnings from continuing operations of CAD176 million, compared to a loss of CAD22 million, prior year. Profit per share from continuing operations was CAD0.97, compared to a loss of CAD0.19.

Element Financial Corp. (EFN.TO) will be in focus after PHH Corp. (PHH), a provider of business process management services for the mortgage and fleet industries, said Monday that it has agreed to sell its fleet management services business, PHH Arval, to Element Financial Corp. for about USD1.40 billion in cash.

In commodities, crude oil futures for July are up USD0.07 or 0.09% at USD102.57 a barrel.

Natural gas for July is up USD0.021 or 0.44% at USD4.633 per million btu.

Gold futures for August are up USD2.20 or 0.18% at USD1,246.30, edging up slightly after six successive days of losses.

Silver for July is up USD0.106 or 0.57% at USD18.845 an ounce. Meanwhile, copper is down USD0.035 or 1.11% at USD3.135 per pound.

In the currency market, the Canadian loonie is trading at USD1.0914 to the US dollar, down 0.13% from previous close.

On the economic front, the US Commerce Department is scheduled to release its factory orders report for April at 10 am ET. Economists expect factory orders to have risen by 0.5% month-over-month.

At 1.50 pm ET, Kansas City Federal Reserve Bank President Esther George will speak on monetary policy in Breckenridge, Colorado.

According to a reading from HSBC, China's final HSBC Purchasing Managers Index stood at 49.4 in May, down from a preliminary estimate of 49.7. However, that was up from April's reading of 48.1.

Meanwhile, Chinese services sector activity rose to a six month high in May, with the index tracking non-manufacturing activity rising to 55.5, from 54.8 in the previous month.

According to flash estimates from Eurostat, Eurozone inflation slowed more than expected in May, declining to 0.5%, raising concerns about deflationary pressures. Inflation held below the European Central Bank's target of 'below, but close to 2%' for the sixteenth consecutive month. The European Central Bank's monetary policy meeting scheduled for Thursday.



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Source: Alliance News


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