TSX Poised For Mixed Open - Canadian Commentary

(RTTNews) - Canadian stocks are poised for a flat open Monday as commodities struggle to move higher even as China vowed to deepen reforms to allow its transition towards a consumption-driven economy. Traders might also prefer to stay cautious ahead of the release of FOMC minutes, due later this week.

Unveiling a raft of reforms, China on Friday announced plans to allow more private investment in the state sector, build a more and impartial and sustainable social security system and let Chinese companies and individuals make investments offshore more easily

Minutes of the FOMC meeting held on October 29 and 30 are scheduled to be released on Wednesday. The minutes are expected to provide more clues on the continuity of the $85 billion asset purchase program.

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

On Friday, the S&P/TSX Composite Index extended gains for a third session, adding 51.17 points or 0.38 percent to 13,482.56.

The price of crude oil was moving lower Monday morning amid concerns over demand growth after last week's report from the OPEC and IEA painted a rosy supply outlook. Crude for December shed $0.37 to $93.47 a barrel.

The price of gold was moving lower Monday morning, with the US dollar holding onto to its recent gains ahead of the release of this week's macroeconomic data. Gold for December slipped $6.90 to $1,280.50 an ounce.

In corporate news from Canada, wood products company Stella-Jones (SJ.TO) announced the acquisition of wood treating facilities in Oregon, Nevada and Arizona from The Pacific Wood Preserving Cos. The purchase price was about $33 million.

Bombardier Inc. (BBD_A.TO, BBD_B.TO) said its unit has got $282 million dual-class Q400 NextGen aircraft orders from Palma Holding Limited.

In economic news, Statistics Canada said foreign investment in Canadian securities strengthened to $8.4 billion in September and was focused on Canadian equities. Meanwhile, Canadian investors reduced their holdings of foreign securities in the month by $1.5 billion, including both debt and equity securities.

Elsewhere, euro area current account surplus declined to a seasonally adjusted EUR 13.7 billion in September from EUR 17.9 billion in August, the European Central Bank reported. Data showed that the surplus on goods trade decreased to EUR 13.7 billion from EUR 14.7 billion in August. Likewise, the surplus on services fell to EUR 7.6 billion in September from EUR 8.2 billion.

Meanwhile, euro zone's foreign trade surplus increased markedly in September, the latest data from the statistical office Eurostat showed. The region's trade in goods with the rest of the world resulted in a surplus of EUR 13.1 billion in September, up from EUR 6.9 billion surplus in August. A year earlier, the surplus amounted to 8.6 billion.