RTTN: TSX May Struggle To Recover, Canadian Economy Stalls
(RTTNews) - Bay Street stocks may struggle to move up Wednesday morning amid mixed cues from the commodities markets and economy. While commodities started recovering from yesterday's slump, discouraging economic data from the U.S., Canada's largest trading partner, may weigh on the sentiment.
However, value buying at lower levels after a huge fall in the previous session, might help stocks in early trading. On Tuesday, the S&P/TSX Composite Index plummeted 343.18 points or 2.96% to 11,263.83, levels not seen since early February.
Meanwhile, Canada said its GDP was unchanged in April, after rising in the past seven months.
U.S. stock futures were pointing to a mixed open, after losing 2.65% yesterday.
Meanwhile, the euro and European equities recovered as European banks borrowed less from the ECB than previously feared. BP Plc gained around 9% after JP Morgan published a report hinting that Exxon Mobil Corp may bid for the company.
The price of crude oil edged up in morning deals ahead of weekly inventories data from the EIA. Crude for August moved up $0.49 to $76.43 a barrel.
The price of gold eased, losing $3.1 to $1,239.30 an ounce.
In corporate news, steel company Gerdau Ameristeel (GNA.TO: News ) and Gerdau S.A. (GGB) said that they will take Gerdau Ameristeel private at $11.00 cash per share or for a total sum of $1.6 billion.
Specialty retailer West 49 Inc. (WXX.TO) said Billabong International Ltd. (BLLAF.PK, BBG.AX) has agreed to acquire all of its outstanding common shares and preferred shares for cash at C$1.30 per share.
Bombardier Transportation, the rail division of Canadian transportation solutions provider Bombardier Inc. (BBD_B.TO), said that it has received $101 million orders from the Delhi Metro Rail Corp. Ltd. of India.
Aviation maintenance services provider Vector Aerospace (RNO.TO) said it, through a wholly-owned subsidiary, has been awarded a $30 million new customer contract for overhaul and repair services on the Rolls-Royce T56 engine.
Energy company Paramount Resources (POU.TO) said it acquired Redcliffe Exploration Inc. and an indirect wholly- owned subsidiary of Paramount.
Fiberglass reinforced pipes making company Hanwei Energy Services (HE.TO) slipped to loss in the fifteen months ended March 31, reporting net loss of C$1.08 per share versus a net profit of C$0.12 per share in the twelve months ended December 31, 2008.
Waste management companies IESI-BFC Ltd. (BIN.TO) and Waste Services, Inc. (WSII) said that the Canadian Competition Bureau will not challenge their merger proposed in early November 2009 as the companies have agreed to sell commercial waste collection assets in five Canadian markets. The merged entity will trade under the symbol "BIN" on the New York as well as TSX.
