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.
A rocky political landscape in Greece and its potential impact on the future of the euro zone is spoiling the recent festive spirits in global markets.
U.S. stock futures and major European indexes are modestly weaker this morning after Prime Minister Antonis Samaras failed to secure enough votes for his presidential candidate in a third and final vote. Greece is now heading to a snap election early next year that could see an anti-austerity party - Syriza - rise to power, which wants to renegotiate the country's debt and perhaps have the country leave the euro zone. Such a scenario would complicate the European Central Bank's plans to ramp up its bond-buying program.
Greece's ATHEX composite index is down about 7 per cent this morning, after falling as much as 11 per cent earlier, although the broad Stoxx 600 index of European equities is down only a modest 0.2 per cent.
Despite the lower start likely on tap for U.S. stocks, the TSX could see some modest gains at the open as it plays catch-up to Wall Street on Friday, when the Dow capped its seven straight day of gains and closed above 18,000 for the first time ever. Canadian markets were closed for the Boxing Day holiday on Friday.
Another factor that could lead to TSX outperformance: higher crude oil prices. U.S. crude prices this morning are up more than 1 per cent - and Brent crude has recaptured the $60 (U.S.) per barrel level - amid news of a supply disruption in Libya. A fire caused by fighting of Libya's main export terminals has destroyed about 800,000 barrels of crude, or more than two days of the country's output. Libya represents just a small fraction of the world's oil supply, but trading volumes are thin and some traders are betting that crude prices could attempt a modest recovery as 2015 gets underway.
Now, here's a closer look at what's going on this morning and what is still to come.
MARKETS:
Futures:
S&P 500 -0.28 per cent; Dow -0.31 per cent; Nasdaq -0.21 per cent; S&P/TSX +0.32 per cent
Equities:
Hong Kong's Hang Seng +1.81 per cent
Shanghai composite index +0.33 per cent
Japan's Nikkei -0.50 per cent
London's FTSE 100 +0.13 per cent
Germany's DAX -0.72 per cent
France's CAC 40 -0.37 per cent
Stoxx 600 -0.26 per cent
Commodities:
WTI crude oil (Nymex Feb) +1.39 per cent at $55.46 (U.S.) a barrel
Natural gas (Nymex Mar) +0.66 at $3.06
Gold (Comex Feb) -0.16 per cent at $1,193.40 (U.S.) an ounce
Copper (Comex Mar) -0.07 per cent at $2.81 (U.S.) a pound
Currencies:
Canadian dollar at 86.02 (U.S.), up 0.0002
U.S. dollar index down 0.01 at 90.01
Bonds:
U.S. 10-year Treasury yield 2.23 per cent, down 0.02
ECONOMIC INDICATORS:
No major reports scheduled.
STOCKS TO WATCH:
Activist investor Carl Icahn has disclosed a 7.77 per cent stake in Manitowoc and said he plans to push the company to split itself in two, mirroring an activist campaign launched in June by Relational Investors LLC. Shares in the crane maker are up nearly 10 per cent in the U.S. premarket.
ANALYST ACTIONS:
Morgan Stanley upgraded Gilead Sciences to "overweight" from "equalweight" with a price target of $104 (U.S.).
TD Securities raised its price target on Newalta to $23 (Canadian) from $20 and maintained a "buy" rating.
THIS MORNING'S TOP INVESTING READS ON THE WEB:
Why the world once again will want higher-cost oil.
Here's why Santa may not deliver stock gains.
U.S. bond sentiment worst since disastrous 2009.
Foreign investors have had just about enough of Abenomics.
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Have feedback on our daily Before the Bell report and suggestions on how to make it more useful in your investing day? Please contact Inside the Market Editor Darcy Keith at dakeith@globeandmail.com.
Darcy Keith