Toronto aims higher as Europe calms concerns about impact from Greek elections - InfoNews

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Toronto aims higher as Europe calms concerns about impact from Greek elections

June 15, 2012 - 8:51 AM

TORONTO - The Toronto stock market looked to join an upward trend around the world Friday amid expectations that central banks will act together if the results from the Greek election this weekend begin to cause financial shocks.

Investors fear that if Greece reneges on terms of its bailout, the country would be forced to leave the euro currency union, with uncertain consequences for financial markets and the global economy.

The Canadian dollar was up 0.02 of a cent to 97.70 cents US.

U.S. futures were higher with the Dow Jones industrial futures ahead 156 points to 12,652, the Nasdaq futures gained 14 points to 1,329 and the S&P 500 futures added 18 points to 1,329.

The Bank of England and the U.K. government said they stand ready to offer up to 140 billion pounds (US$217 billion) in cheap loans to lenders that might have trouble raising money from credit markets, which could tighten up if the Greek elections' results spook investors.

The European Central Bank, meanwhile, continues to offer unlimited amounts of cheap short-term loans as well, even though its chief, Mario Draghi, has warned that Europe governments need to make bold decisions to shore up confidence in the euro.

Draghi said Friday the ECB has supported banks against the ongoing debt crisis with €1 trillion ($1.26 trillion) in emergency credit to banks and that now it was the governments' turn to act.

Germany, however, is reluctant to accept any big moves that might cost Berlin more money, such as jointly-issued eurobonds. Any solutions would be announced at a June 28 summit of world leaders.

In commodities, the July crude contract on the New York Mercantile Exchange was up 31 cents at US$84.22 a barrel.

July copper was up three cents to US$3.38 a pound while August gold edged up $13.30 to US$1,632.90 an ounce.

Overseas, Britain's FTSE 100 rose 0.3 per cent to 5,483 while Germany's DAX gained 1.02 per cent to 6,202. France's CAC-40 rose 1.41 per cent at 3,074.

In Asia, Japan's Nikkei 225 closed flat at 8,569.32, but Hong Kong's Hang Seng jumped 2.3 per cent. Wall Street was on course to open higher, with Dow Jones industrial futures rising 0.4 per cent to 12,652. S&P 500 futures gained 0.3 per cent to 1,322.

News from © The Canadian Press, 2012
The Canadian Press

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