March 12 (Reuters) – Canada’s resource-heavy main
stock index looked set to open lower on Monday, hurt partly by a
drop in commodity prices after weak trade data from China.
China’s trade balance plunged $31.5 billion into the red in
February as imports swamped exports to leave the largest deficit
in at least a decade and fuel doubts about the extent to which
frail foreign demand or seasonal distortion drove the drop.
FACTORS TO WATCH
* Canadian equity futures pointed to a lower open.
* U.S. stock index futures were little changed as economic
data in China gave investors reason to pause after a 3-day
rally.
* European stocks reversed early losses and turned slightly
positive, reviving a three-session rally as investors shrugged
off grim Italian GDP data and the triggering of Greek credit
default swaps to chase euro zone banking stocks higher.
* China will encourage the value of its yuan currency to be
set by the market and step back from intervention “in an orderly
manner”, while keeping policy flexible to support credit growth
in the face of volatile capital flows, the central bank said.
COMMODITY PRICE MOVES
* The Thomson Reuters-Jefferies CRB index, a global
commodities benchmark, fell 0.72 percent in early trade.
Continued…
