The Before the Bell report is constantly updated to reflect the latest news developments and market moves in the premarket. Check back later for updates.
U.S. stock futures are suffering heavy losses of nearly 1 per cent ahead of what should be a nerve-wracking day for investors amid the worsening crisis in the Ukraine - but a surge in gold and energy prices this morning may limit the damage to the resource-heavy S&P/TSX composite index.
Money flows out of perceived riskier assets such as stocks and into so-called safe havens such as gold and U.S. treasuries are on full display this morning. Bullion prices are up about 1.7 per cent and the yield on the 10-year U.S. Treasury is down to 2.61 per cent, about a one-month low. Crude oil prices are up close to 2 per cent.
The Russian army moved thousands of troops into Crimea, a pro-Russian region on Ukraine, and surrounded three Ukrainian military bases on Sunday. The leaders of the Group of Seven nations condemned Russia's actions as a clear violation of Ukraine's territorial rights. Preparation for the planned G8 summit in Sochi is now on hold and U.S. Secretary of State John Kerry is traveling to Ukraine today as western leaders seek to respond to Russia's actions.
The U.S. has made it clear it is not considering any kind of military response. But the crisis has cast considerable uncertainty over the economies of Ukraine and Russia, as well as neighbouring countries. Russian's ruble fell more than 1.8 per cent against both the U.S. dollar and the euro, and Russia's central bank responded by raising its key interest rate to try to stop the violent currency move. Russia's stock index plunged by nearly 11 per cent.
Some see the dip in markets as a short-lived over-reaction to a geopolitical development and a possible buying opportunity. But for now, it's difficult to determine just what kind of longer-term, if any, impact the crisis will have on market sentiment.
The Ukrainian crisis aside, markets are taking in less-than-stellar economic data out of China this weekend. Two separate readings on China's monthly manufacturing survey showed the sector was weaker last month than January. The official purchasing managers index released Saturday showed factory activity slowing to an eight-month low in February, edging down to 50.2 from the previous month's 50.5. That was actually just ahead of market expectations of 50.1.
The U.S. releases its own manufacturing index later this morning.
Now, here's a closer look at what's going on this morning and what is still to come.
MARKETS:
Equities:
Futures: S&P 500 -0.86 per cent; Dow -0.83 per cent; Nasdaq -0.84; S&P Toronto -0.47 per cent
Hong Kong's Hang Seng -1.47 per cent
Shanghai composite index +0.91 per cent
Japan's Nikkei -1.27 per cent
London's FTSE 100 -1.86 per cent
Germany's DAX -2.94 per cent
France's CAC 40 -2.50 per cent
Commodities:
WTI crude oil (Nymex Apr) +1.85 per cent at $104.50 (U.S.) a barrel
Gold (Comex Apr) +1.69 per cent at $1,343.70 (U.S.) an ounce
Copper (Comex May) -0.89 per cent at $3.16 (U.S.) a pound
Currencies:
Canadian dollar at 90.04 (U.S.), vs. 90.30 at Friday's North American close.
U.S. dollar index up 0.18 at 79.87
Bonds:
U.S. 10-year Treasury yield 2.61 per cent, down 0.04
ECONOMIC INDICATORS:
Canadian monthly producer prices in January rose almost three times more than expected, and by the most since February 2013, due to higher energy costs and the weaker Canadian dollar. Prices were up 1.4 per cent, marking the third straight gain.
U.S. personal income in January rose 0.3 per cent from December, a little higher than Street expectations of 0.2 per cent and up from flat the month before. U.S. personal spending rose 0.4 per cent in January, more than the expected 0.1 per cent.
(858 a.m. ET) U.S. releases the PMI Manufacturing Index.
(10 a.m. ET) U.S. releases the ISM Manufacturing Index for February. The market expects a reading of 51.9, up from January's 51.3.
(10 a.m. ET) U.S. releases construction spending data for January.
STOCKS TO WATCH:
Magna International posted a 31 per cent jump in quarterly profit -- well above Street expectations -- and raised its dividend. The company also said it expected sales of $28.4 billion-$29.7 billion in its parts business, slightly lower than the $28.6 billion-$29.9 billion estimated in January. U.S. shares are up 3.2 per cent in the premarket.
Major Drilling Group International says its third-quarter revenue dropped 42 per cent and its loss tripled as major customers delayed decisions on their 2014 exploration programs.
Other earnings include: AuRico Gold; Canadian Apartment Properties REIT; Pengrowth Energy; Ritchie Bros. Auctioneers; Stillwater Mining;Vermilion Energy.
Osisko Mining and Goldcorp have reached an out-of-court settlement over Osisko's legal action aimed at blocking Goldcorp's hostile takeover offer.
ANALYST ACTIONS:
Canaccord Genuity downgraded Dundee REIT to "hold" from "buy" and cut its price target to $30 (Canadian) from $31.25, commenting that office fundamentals are softening.
BMO Nesbitt Burns downgraded CAP REIT to "market perform" as fourth-quarter results missed expectations. It kept a price target of $25 (Canadian) but said it will review this following the company's quarterly conference call.
RBC upgraded Genworth MI Canada to "outperform" from "sector perform" and raised its target to $41 (Canadian) from $37, on CMHC's move to raise mortgage insurance premiums.
Raymond James downgraded SNC-Lavalin to "market perform" from "outperform" and hiked its price target to $52 (Canadian) from $50, commenting that the sale of its Altalink asset is already priced into shares.
RBC Dominion Securities downgraded Cobalt International Energy to "sector perform" from "outperform" and cut its price target to $22 (U.S.) from $24.
Industrial Alliance Securities upgraded Pason Systems to "buy" from "hold" and hiked its price target to $32 (Canadian) from $27.
Canaccord Genuity upgraded Nokia to "buy" and raised its price target to $10 (U.S.) from $8.
THIS MORNING'S TOP INVESTING LINKS:
The best and worst new ETFs of 2013.
Why open-end index funds are safer for most individual investors.
Is China set for its own 'lost decade'?
3D phones? Here's the tech gizmos that never took off.
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For instant headlines on breaking economic and corporate news in the premarket, follow Darcy Keith on Twitter at @eyeonequities.
Darcy Keith