CANADA STOCKS-TSX may open lower as euro zone tensions weigh

Mon Apr 23, 2012 8:29am EDT
 
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April 23 (Reuters) - Canada's resource heavy main stock index looked set to open lower on Monday, with commodity prices falling as political tension in France and the Netherlands raised concerns over euro zone's commitment to tackle its ongoing debt crisis.

Weak economic data from Germany and China weighed further on the sentiment.

TOP STORIES

* The euro zone's business slump deepened at a far faster pace than expected in April, suggesting the economy will stay in recession at least until the second half of the year.

* The gloomier view came as the Dutch government, a close ally to Germany in calling for tougher austerity measures to fight the crisis, was preparing to resign because of a crisis over budget cuts, according to two broadcasters.

* Investors were also absorbing the implications of the victory in the first round of France's presidential poll of the Socialist Francois Hollande, who has promised to renegotiate a European budget pact.

* China's factories stabilised in April as output ticked higher, new business rose from multi-month lows and export orders perked up, though not sufficiently for a private sector survey of purchasing managers to flag a return to expansionary territory.

* Swiss food group Nestle is to buy U.S. drugmaker Pfizer's infant nutrition business for $11.85 billion, beating out French rival Danone in the battle for dominance of baby food in fast-growing emerging markets.

MARKET SNAPSHOT   Continued...