North American stock market futures were up on Monday, suggesting Toronto stocks could gain during the trading session. U.S. markets are closed for the Memorial Day holiday.
Overseas, almost all major market indices have risen, after six opinion polls taken in the run-up to Greece’s general election next month show voter support increasing for the New Democracy party. The party advocates cutting spending and raising taxes to get the country’s debt crisis under control. The polling results have many investors now thinking that Greek voters are beginning to understand the stark reality of what an exit from the euro zone would mean for the country.
However, as a ray of hope shone on Greece, Spain is bringing new concerns to the global market. Shares of Bankia SA are down 13 per cent after the Spanish bank said it would need to ask the government for a bailout of €19 billion, far more than had been expected. At the same time, it is becoming more expensive for the Spanish government to get the money it needs to recapitalize its banks. The yield on Spain’s 10-year government bonds increased 13 basis points to 6.42 per cent. Historically, once the yield on the 10-year bench mark hits 7 per cent, European governments have had to seek external bailouts themselves.
Markets: China’s Hang Seng index up 0.5 per cent
Japan’s Nikkei 225 index up 0.2 per cent
London’s FTSE 100 index up 0.9 per cent
France’s CAC 40 index up 0.9 per cent
Germany’s DAX index up 0.6 per cent
Spain’s IBEX 35 index down 0.8 per cent
Commodities: Oil up $1.01 (U.S.) to $91.87 a barrel (July delivery)
Gold up 0.5 per cent at $1,581.12 an ounce (June delivery)
Canadian dollar up 0.64 per cent to 97.77 cents
Economic data: There is no major economic data scheduled for release out of the U.S. or Canada today.
Stocks to watch: Expect large volume in the trading of shares of Canadian Pacific Railway Ltd. The federal government has been facing pressure from industries across the country to intervene in the company’s labour dispute. Shares of RIM could be volatile today. The Globe and Mail’s Iain Marlow reports that the company is close to announcing another round of major job cuts.
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