A taxi across Bay Street in Toronto's financial district as the morning light is reflected on the streets in Toronto on June 14, 2012. THE CANADIAN PRESS/Nathan Denette
July 30, 2012 - 8:53 AM
TORONTO - The Toronto stock market is poised to start the week slightly lower as commodities back off and economic data out of Europe offers little motivation.
The Canadian dollar rose 0.01 of a cent to 99.57 cents US.
The European Commission released a report Monday showing that economic sentiment dipped, with pessimism growing in both the industrial and service sectors. There were sharp declines in Germany, France and in Spain.
The report came out the same day that Spain's National Statistics Institute said its economy contracted for the third straight quarter.
In commodities, the September crude contract on the New York Mercantile Exchange shifted down 58 cents to US$89.55 a barrel.
September copper moved back two cents to US$3.40 a pound while August gold lost $4.10 to US$1,613.90 an ounce.
The latest data comes as U.S. Treasury Secretary Timothy Geithner meets with economic policy makers in Europe. His first stop will be on the North Sea island of Sylt where Finance Minister Wolfgang Schaeuble is vacationing. Afterwards, he will travel to Frankfurt to meet ECB President Mario Draghi.
On Wall Street, the Dow Jones industrial futures are down 15 points to 13,018 and the broader S&P futures are down 2.9 points to 1,379.60. Nasdaq futures are up 0.75 points at 2,642.75.
In Canada, the banking sector will be in the spotlight after Standard & Poor's Ratings Services cut its outlook on seven Canadian banks on Friday to negative from stable.
The move, which left the banks' ratings intact but suggested they may be under some pressure in future, was made over concerns about unsustainably high home prices and consumer debt levels.
The New York debt-rating firm cut the credit ratings of credit ratings of Royal Bank of Canada (TSX:RY), Toronto-Dominion Bank (TSX:TD), Bank of Nova Scotia (TSX:BNS), National Bank of Canada (TSX:NA), Laurentian Bank of Canada (TSX:LB), Home Capital Group Inc. (TSX:HCG) and Central 1 Credit Union.
In the U.S., Loews Corp.'s net income plunged 78 per cent in the second quarter as the diversified holding company took a large charge because it lowered the value of its natural gas and oil properties due to declining prices.
News from © The Canadian Press, 2012