TSX appears headed for another negative day amid lower commodity prices

TORONTO – The Toronto Stock Exchange looks set to begin the week on a negative note ahead of a spate of earnings reports by several well-known Canadian companies, as U.S. index futures, overseas stock markets and major commodity prices all fell Monday before the open of North American equities markets.

The Canadian dollar was also down early Monday, slipping 0.21 of a cent to 90.86 cents US. The loonie ended last week in Toronto at 91.07 cents US, the highest close since mid-February.

U.S. index futures were down across the board early Monday. The Dow Jones industrial futures dropped 41 points to 16,315.0, the Nasdaq futures fell 26.5 points to 3,511.0 while the S&P 500 futures were down 7.50 points at 1,852.6.

Prices on commodity markets were generally slightly below their Friday closes. Crude future contracts for May slipped 42 cents to US$100.72 a barrel. May copper contracts were down one cent at US$3.01 a pound while June bullion contracts slipped $2.40 to US$1,301.10 an ounce.

Investors will be watching major overseas developments Monday, including the proposed merger of two European cement and construction materials producers with global operations including in Canada.

The new company, to be called LafargeHolcim, would have a combined US$44 billion in annual revenues if the proposed “merger of equals” is completed. Paris-based Lafarge is Canada’s largest producer of cement and concrete building materials while Holcim, based in Switzerland, has a smaller presence in this country but extensive holdings in emerging economies.

Also overseas, Japan and Australia say they have agreed a free trade deal after overcoming differences on autos and agriculture. The deal calls for Japan to gradually phase out its nearly 40 per cent tariffs on Australian exports of beef. In turn, Australia is to end its tariffs on Japanese-made vehicles.

In corporate developments, Paris-based Vivendi said Saturday it will sell SFR, the No. 2 mobile phone operator in France, to media company Altice in a deal that could eventually be worth more than $23 billion. Altice owns the French cable operator Numericable. Vivendi says it wants to focus on its other businesses, Universal Music Group and Canal+ pay television.

The Potash Corporation of Saskatchewan Inc. (TSX:POT) says it will have a new president and CEO starting in July. Jochen Tilk will take over from current CEO Bill Doyle, who headed efforts to thwart an attempted takeover of Canada’s largest fertilizer producer by global mining giant BHP Billiton. Tilk has a 30-year career in mining, most as chief executive of Toronto-based Inmet Mining, which was acquired a year ago by First Quantum Minerals ltd. (TSX:FM).

Discount retailer Dollarama Inc. (TSX:DOL) and Cogeco Cable Inc. (TSX:CCA) issue their latest quarterly reports on Wednesday and Shaw Communications Inc. (TSX:SJR.B) issues its results on Thursday.

European bourses were down before North American markets opened. London’s FTSE 100 index lost 0.61 per cent, Frankfurt’s DAX was down 1.10 per cent and the Paris CAC 40 declined 0.63 per cent.

Asian markets were mixed Monday. Tokyo’s Nikkei 225 dropped 1.69 per cent, Hong Kong’s Hang Seng slipped 0.59 per cent but China’s Shanghai Composite Index gained 0.74 per cent.