Yahoo Finance Before the Bell: 5 things you should know
European markets are holding steady on Tuesday as the euphoria of the recent Spanish banking bailout fades and fears over what's to come in forthcoming Greek elections returns to the fore. Yields on Spanish and Italian bonds continue to rise and that is also weighing on investor sentiment.
If present Eurozone circumstances weren't enough to rattle investor confidence, now comes word that tiny Cyprus may also require a financial bailout. The Cypriot government is reportedly encouraged by the terms of the US$125 billion Spanish banking deal. Cyprus' problems stem from losses at the country's two largest lenders after having to mark down the value of their holdings of Greek government bonds and loans.
Most Asian bourses fell on Tuesday as the excitement over the multibillion-dollar bank bailout for Spain evaporated and concerns rose that a broader economic Eurozone catastrophe may be unavoidable.
Prior to the TSX open, here's what you should know:
*U.S. futures point to a mixed open as investors monitor the Eurozone debt crisis and Spanish and Italian bond yields. Futures for the Dow Jones Industrial Average were up 74 points, or 0.6 per cent, at 12389. But the S&P 500 futures slipped 5.9 points, or 0.4 per cent, to 1327.6, while Nasdaq 100 futures fell 31.5 points, or 0.5 per cent, to 2569.
*Crude oil futures fell below US$98 a barrel on Tuesday. Brent crude futures slipped 76 cents to $97.33. U.S. oil was down 52 cents at $82.18 a barrel after hitting a one-year low at $81.07.
*Spot gold was down 0.4 per cent at $1,589.06 an ounce, while U.S. gold futures for August delivery was down $6.30 an ounce at $1,590.50. Prices fell below $1,600 an ounce last week after hopes for another round of quantitative easing stateside were dashed.
*The Canadian dollar shed 0.40¢ and is trading at 96.97¢ US as commodities weakened and the greenback strengthened.
*On the economic data calendar for Tuesday is an NFIB Small Business Optimism Index and an ICSC-Goldman Sachs Store Sales report. Also due today, the U.S. Treasury will release its monthly budget report for May.
