News Column

Lower open in store for TSX

July 25, 2014

Air Canada, Talisman in focus

Futures pointed to a lower opening for Canada's main stock index on Friday as tensions between the West and Russia, weak German data and mixed corporate earnings weighed on investor sentiment.

The S&P/TSX composite index was 0.07 points north of breakeven to close Thursday's session at 15,394.45. Futures Friday morning were lower 0.1%.

The Canadian dollar dipped 0.18 cents to 92.89 cents U.S. early Friday

Canada said on Thursday it would impose sanctions on a range of Russian firms and banks to punish Moscow for what it said was the illegal occupation of Crimea and "provocative military activity" in eastern Ukraine.

Talisman Energy, approached by Spain's Repsol for talks over a potential deal, may find that its appeal lies more in its individual assets than as a candidate for a complete takeover.

Raymond James raised the target on Air Canada to $7.50 from $6.50, with an underperform rating.

Barclays cut the rating on Cenovus Energy to equal-weight from overweight

National Bank Financial resumed coverage on Rubicon Minerals with outperform rating


The TSX Venture Exchange gave back 0.58 points Thursday to 1,011.65


Markets look set to chalk up another week of gains, barring surprises Friday.

Ahead of the opening bell, futures for the Dow Jones Industrials slid 20 points, or 0.1%, to 16,978. Futures for the S&P 500 gave back 3.25 points, or 0.2%, to 1,977.50, and futures for the NASDAQ shed 11.75 points, or 0.3%, to 3,960.

21st Century Fox has sold its satellite TV operations in Italy and Germany to BSkyB, raising about $9 billion U.S. in cash as it stalks Time Warner.

Shares of Amazon fell nearly 10% in pre-market trading after the company posted a larger than expected loss.

Yahoo and Ebay were also weaker. Facebook gained nearly 0.7% after hitting an all-time high Thursday on bumper earnings.

European Union ambassadors meet for a second day to talk about how to escalate sanctions on Russia over Ukraine. A decision is not expected until next week.

Russian stocks were down 1%, extending their losses for the year. German business confidence fell for a third month in a row as geopolitical tensions continued to take their toll.

Most European markets were weaker in early trade, although robust U.K. GDP data helped keep the FTSE 100 steady.

Asian markets ended the week mixed. Japan'sNikkei and China's Shanghai Composite both rose about 1%. Stocks in Kuala Lumpur fell as investors remain cautious after a Malaysia Airlines flight crashed last week, leaving the airline's future in the balance.

Oil prices dipped 10 cents to $101.97 U.S. a barrel

Gold prices gained $4.80 to $1,295.60 U.S. an ounce.

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Source: Baystreet Stock Market Update (Canada)

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