The Canadian Press
The Toronto stock market could be in for a higher open as investors take in data showing Canadian economic growth in late 2009 was stronger than expected.
Statistics Canada said gross domestic product rose at an annualized rate of 5% in the fourth quarter, much better than the 4% rate that was forecast.
GDP growth in December was 0.6%, against a 0.4% rise that had been expected.
The Canadian dollar moved 0.25 of a cent higher to US95.25¢.
U.S. futures pointed to a positive open as insurer AIG made its biggest asset sale since being rescued by the U.S. government.
The Dow Jones industrial futures gained 22 points to 10,333, the Nasdaq futures were ahead 5.75 points to 1,824.25 while the S&P 500 futures advanced 2.1 points to 1,105.5.
The May copper contract on the New York Mercantile Exchange gained 8¢ to US$3.35 a pound. Many mines in Chile have been affected by a massive quake that registered 8.8 on the Richter scale hit the country. Chile exports 36% of the world’s copper. Analysts say mines have been particularly affected by damage to infrastructure, especially electricity.
Teck Resources (TSX:TCK.B) issued a statement early Monday saying “its Chilean operations were not damaged, have been minimally affected, and are operating normally.”
Elsewhere in the mining sector, Anglo-Australian miner Rio Tinto said Monday it has acquired 15 million shares in Ivanhoe Mines Ltd. (TSX:IVN), increasing its ownership in the Canadian company to 22.4%. Rio Tinto bought each share at $15.50, for a total investment of $244 million — adding 2.7 percentage points to its stake in the Vancouver-headquartered company.
Rio Tinto and Ivanhoe Mines are development partners for the Oyu Tolgoi copper project in Mongolia.
April gold on the Nymex lost $5.30 to US$1,113.60 an ounce.
Oil prices moved above US$80 a barrel as the April contract in New York was up 30¢ to UAS$79.96 a barrel.
American International Group Inc. has agreed to sell its Asian life insurance business to Britain’s Prudential PLC for US$35.5 billion. It’s the biggest deal yet made by AIG since it received multiple bailout packages from the government during the credit crisis.
AIG had been planning to sell the division, known as AIA Group, as part of its ongoing plans to streamline operations and repay the U.S. government. As of Dec. 31, AIG’s outstanding assistance from the government totalled US$129.26 billion.
Hopes for a resolution to the Greek debt crisis grew as EU Monetary Affairs Commissioner Olli Rehn arrived in Athens to meet Greek Prime Minister George Papandreou.
The meeting between EU and Greek officials will take place amid reports that the German and French governments are preparing to support a bailout package involving state-owned banks buying Greek government bonds. Greece has to roll over a large of its debts in the next couple of months and is expected to start shortly with a 10-year bond issue, worth as much as 5 billion euros ($6.8 billion).
The EU has given the Greek government until March 16 to show progress with its pledge to cut the deficit by 4% of GDP this year, gradually bringing it to under 3% in 2012.
Earlier in Asia, Japan’s benchmark Nikkei 225 stock index advanced 0.5% while Hong Kong’s Hang Seng benchmark jumped 2.2%.
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