Futures Falter Wednesday

Bombardier, Manulife in Focus

Stock futures suggested Canada’s main stock index could shed gains on Wednesday after rebounding in the previous session, as the recovery in share markets lost steam.

The S&P/TSX Composite Index regained 29.12 points to close Tuesday at 15,363.93

The Canadian dollar fell 0.06 cents to 79.91 cents U.S. Wednesday morning.

March futures doffed 0.4% Wednesday.

Embraer SA and Bombardier Inc are targeting the Chinese market with a limited offering of smaller aircraft for regional airlines because they are allowed to only operate jets with 100 seats or less, according to company executives.

Manulife Financial Corp is weighing the sale of a number of U.S. insurance assets after conducting a strategic review of its U.S. operations including John Hancock.

TerraForm Power, controlled by Brookfield Asset Management, has launched a 995-million-euro ($1.2-billion U.S.) takeover bid for Spanish renewable energy firm Saeta Yield to expand its presence in Western Europe.

BMO cut the target price on Innergex Renewable Energy to $15.00 from $19.00

RBC cut the target price on Klondex Mines to $3.00 from $4.50

Credit Suisse raised the price target on Stelco Holdings to $32.00 from $29.00

On the economic docket, Statistics Canada reported that Canadian municipalities issued $8.1 billion in building permits in December, up 4.8% following a 7.3% decline in November. The agency attributes the December increase to higher construction intentions in the residential sector.

ON BAYSTREET

The TSX Venture Exchange hiked 26.42 points, or 3.3%, to close Tuesday at 829.65

ON WALLSTREET

U.S. stock index futures dropped deep into the red ahead of Wednesday's open, pulling back from the roller coaster ride seen on Wall Street in the previous session.

Futures for the Dow Jones Industrials crumpled 184.77 points, or 0.7%, to 24,693

S&P 500 futures skidded 13.24 points, or 0.5%, to 2,681.50, while futures on the NASDAQ Composite gave back 44.73 points, or 0.7%, at 6,626.25

After two major selloffs, leading U.S. indexes saw sharp swings yesterday, with the Dow Jones industrial average starting Tuesday significantly lower, before rallying and closing up 567.02 points at 24,912.77. The index traded in a range of 1,167.49 points through the course of Tuesday's session.

Some of the reasons that investors gave for yesterday's sharp swings included fears over interest rates, obscure volatility funds that use leverage, and computer-driven trading.

Earnings season continued in full swing Wednesday with Hasbro and Michael Kors reporting before the bell. Hasbro posted mixed results, with sales missing expectations. The stock declined more than 4% in the pre-market. 21st Century Fox, Tesla Motors, IAC/InterActive, Yum China and Yelp are expected to publish updates after the bell.

Global markets also fell sharply. Japan’s Nikkei 225 regained 0.2%, and in Hong Kong, the Hang Seng Index fell 0.9%.

Oil prices slipped 19 cents to $63.20 U.S. per barrel.

Gold prices slid $2.90 to $1,326.60 U.S. an ounce.