TSX Poised For Cautious Start - Canadian Commentary

(RTTNews) - Canadian stocks are poised for a mixed open Monday as commodities struggle to move higher despite signs of a fairly robust U.S. recovery and optimism that China's economy is stabilizing. Elsewhere, Asian stocks ended mostly higher overnight, with upbeat data out of the U.S. and China, and a weaker yen underpinning sentiment. Meanwhile, the European markets are mostly lower after euro zone investor sentiment declined unexpectedly in December from a two-and-a-half year high.

U.S. stock futures were pointing to a flat open.

On Friday, the S&P/TSX Composite Index snapped its three-session losing streak to add 80.32 points or 0.61 percent to 13,280.72.

The price of crude oil was flat Monday morning as demand concerns eased amid a recent batch of upbeat macroeconomic data out of the US and China. Crude for January inched up $0.01 to $97.66 a barrel.

The price of gold was ticking higher Monday morning with the US dollar trading flat versus a basket of currencies amid lack of fresh triggers. Gold for February edged up $3.10 to $1,232.10 an ounce

In corporate news from Canada, Equal Energy Ltd. (EQU.TO) announced that it would be acquired by Petroflow Energy Corp (PEF.V) and Petroflow Canada Acquisition Corp. for $5.43 per share, for a total consideration of about $230 million.

Egypt and Yemen focused oil and gas company TransGlobe Energy Corp. (TGL.TO) provided 2014 funds flow guidance of $146 million, representing an 8 percent increase over 2013 estimated funds flow of $135 million

Uranium exploration company Denison Mines Corp. (DML.TO) said that about 104.85 million common shares of Rockgate Capital Corp. have been validly deposited in response to its acquisition offer and said it would move to acquire the Rockgate common shares not deposited to the offer through a plan of arrangement.

Rambler Metals and Mining Plc. (RAB.V) swung to profit in the recent quarter ended 31 October 2013, reporting post tax profit of C$3.71 million and C$0.026 per share compared to a loss of C$718,000 or C$0.005 per share for the same period in 2013.

In economic news from Canada, the Canada Mortgage and Housing Corp said the seasonally adjusted annualized rate of housing starts was 192,235 units last month, down from 198,161 in October and missing consensus expectations for 195,000.

From the euro zone, Germany's trade surplus declined more than expected in October, data from the Federal Statistical Office revealed. The trade surplus fell to EUR 17.9 billion in October from EUR 20.3 billion in September. Economists expected a decline to EUR 18.3 billion.

German industrial production declined unexpectedly by 1.2 percent month-on-month in October, when it was forecast to rise 0.7 percent, data showed. The decline in October follows a 0.7 percent drop in September and a 1.5 percent rise in August, Federal Ministry of Economics and Technology said.

Meanwhile, euro zone investor sentiment declined unexpectedly in December from a two-and-a-half year high, a monthly survey by the think tank Sentix showed today. The confidence index came in at 8 points in December, down from 9.3 in November. The reading was forecast to rise to 10.3.