(RTTNews) - Canadian stocks are poised for a flat open Wednesday amid mixed cues from the commodities markets. While energy stocks are likely to get support from firm crude oil prices and $1.5 billion merger deal in oil patch, gold stocks may continue to lose shine along with drifting gold price.
Concerns over global economic growth continued to weigh on sentiment, with the main index lingering near its 8-month low.
U.S stock futures were pointing to a lower open.
Elsewhere, most Asian markets were down after the U.S. ISM said its index of activity in the service sector fell to 53.8 in June from 55.4 in May, belying economists expectations for a much more modest decrease to a reading of 55.0.
Meanwhile, European stocks were lingering in red, pressured by sell-offs in banks and mining stocks. In economic news from the region, data from the Customs Office revealed that the French trade deficit increased to EUR 5.5 billion in May from EUR 4.25 billion in April. Economists were expecting the shortfall to narrow to EUR 3.9 billion. Meanwhile, German factory orders fell for the first time in five months in May.
On Tuesday, the S&P/TSX Composite Index gained 107.67 points or 0.97% to 11,200.17, after settling the previous session at its 2010 low.
The price of crude oil edged up ahead of weekly inventories data from the API, after falling for the past seven sessions. Crude for August was up $0.75 to $72.73 a barrel.
Meanwhile, the price of gold continued to move down near its 6-week low. Gold for August was down $2.90 to $1,192.20 an ounce, after surrendering $12 in the previous session.
In corporate news, bitumen producer UTS Energy Corp. (UTS.TO: News ) said it will be acquired by Total E&P Canada Ltd., a subsidiary of French energy company Total SA. Shareholders of UTS would receive cash consideration of $1.5 billion or $3.08 per share and shares in a new, publicly-traded exploration and development company, SilverBirch Energy Corp. Cash consideration to be received by UTS shareholders represents a 46% premium to its closing price on July 6, 2010 of $2.11 per share.
Airlines services provider Air Canada (AC_A.TO) reported June total traffic of 4.8 billion revenue passenger miles, compared to 4.2 billion revenue passenger miles last year. System load factor for the month rose to 84.7% from 80.9% in the year-ago period.
Specialty printing paper maker PM Catalyst Paper (CTL.TO) said it is permanently closing its Elk Falls paper mill near Campbell River, British Columbia in September. The company noted that the associated asset impairment charge, including severance costs, is estimated at $302 million and will reflect in the second quarter results.
