TSX Poised For Flat Open

Tomahawk, WI 10/20/2011 (PennyPayDay) – Canadian stocks are likely to open flat Thursday amid mixed cues from the commodities market and skepticism over a decisive solution to the European debt crisis in the upcoming EU summit. Traders' optimism over Sunday's EU summit faded after French President Nicolas Sarkozy yesterday said that Berlin and Paris were divided over how to make the euro zone bailout fund more effective.

On the other hand, a guideline document presented by German officials that suggested that the EFSF would be able to purchase bonds from the secondary market may lift trader sentiment.

On Wednesday, the S&P/TSX Composite Index shed 203.61 points or 1.69 percent to 11,849.50.

The price of crude oil was steady above $86 Thursday morning as the U.S. dollar was trading weak. Crude for December edged up $0.12 to $86.41 a barrel.

The price of gold was extending losses for a fourth session even as the U.S. dollar was trading weak versus a basket of currencies. Strong physical demand from Asia is supporting prices from a big fall, analysts opined. Gold for December lost $26.30 to $1,620.70 an ounce.

In corporate news from Canada, integrated oil firm Encana Corp. reported that its third-quarter net earnings were $120 million or $0.16 per share, down from $606 million or $0.80 per share in the same quarter last year. However, operating earnings increased to $171 million or $0.23 per share from $85 million or $0.12 per share last year. Analysts were expecting the company to report earnings of $0.11 per share for the quarter.

Commercial real estate company Brookfield Office Properties Inc. announced that it has sold the Newport Tower office building in Jersey City, NJ to Multi-Employer Property Trust or MEPT for $377.5 million.

Diversified communications & media company Shaw Communications posted a decline in its third-quarter net income to C$82.49 million from C$121.57 million a year earlier

Leather apparel and accessories maker Danier Leather reported a narrower first quarter loss of C$2.8 million or C$0.59 per share, compared to a loss of C$2.9 million or C$0.63 per share in the year-ago period.

In economic news, Statistics Canada said wholesale sales rose up 0.2 percent in August to C$48.4 billion following a 0.9 percent advance in July. Economists expected a 0.4 percent monthly advance in August. In volume terms, wholesale sales fell 0.9 percent in August.

From south of the border, data from the U.S. Labor Department revealed that seasonally adjusted new claims for unemployment insurance came in at 403,000 for the weekended October 15. That marks a drop from the previous week's revised level of 409,000, but based on initial reports of 404,000 new claims for the week ended October 08, most economists had expected 400,000 new claims.

Elsewhere, Standard & Poor's downgraded Slovenia's sovereign credit rating, to 'AA-/A-1+' from 'AA/A-1+ and said Slovenia's fiscal position has deteriorated since the onset of the 2008 financial crisis.

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