CANADA STOCKS-TSX may open lower on weaker commodity prices
May 25 (Reuters) - Toronto's main stock index is expected to open lower on Tuesday as commodity prices were hammered by worries over Europe's banking sector and North Korea's threatened military action against the South.
Nervousness in the market was exacerbated by heightened geopolitical tensions in Asia after North Korean leader Kim Jong-il ordered his military to be on a combat footing.
Money markets have seen an increasing reluctance to lend, particularly for longer term, raising fears that dollar-funding strains could further hobble troubled banks. [MMT/]
U.S. stock index futures were steeply down ahead of data on home prices and consumer confidence. [.N]
European markets fell sharply to their lowest in nearly nine months, led by banking and commodity shares, while German bonds hit a record high on worries about the fate of euro zone banks and the impact of austerity measures on economic growth.
Asia stocks fell to multi-month lows, with the Nikkei shedding more than 3 percent.
Here is some news that could affect stock prices:
Oil fell below $68 a barrel on Tuesday as investors fled from riskier assets to dollar safety on growing concerns that the European debt crisis could worsen and damage the still fragile global economic recovery. [O/R] Continued...