The Toronto stock market headed for a negative start to the session Thursday amid the possibility of downgrades of some of the world’s biggest banks and doubts as to whether Greece will get the bailout money needed to head off bankruptcy
The Canadian dollar also declined as traders opted out of riskier investments such as commodity-based currencies and bought into the safe-haven status of U.S. Treasuries.
The loonie fell 0.28 of a cent to 99.77 cents U.S.
Among Canadian companies, Barrick Gold Corp. said its adjusted net earnings grew 15% to $1.17 billion U.S. or $1.17 a share in the fourth quarter on higher gold prices and copper sales. But the results still missed analyst expectations by 10 cents.
Nexen Inc. saw its profit cut by nearly 75% in the latest quarter to $43 million as the big international oil and gas producer booked charges on its books for future oilsands projects and low natural gas prices.
On the economic front, Statistics Canada told us that manufacturing sales improved 0.6% in December to $49.9 billion, the fifth hike in six months.
The nation’s number crunchers also said foreign investment in our securities slowed to $7.4 billion in December, half November’s total. Canadians, meanwhile, acquired $2.8 billion of foreign securities in December, mostly bonds.
U.S. stocks were mixed with about 30 minutes before markets open, suggesting that stocks will behave that way at the start of trading.
Futures for the Dow Jones industrial average fell one point to 12,762. Futures for the broader S&P 500 fell 1.60 points or 0.1% to 1,340.60, but futures for the Nasdaq improved 2.25 points, or 0.1% to 2,559.75.
All three indexes fell on Wednesday, with the Dow sustaining its biggest one-day decline so far this year -- though the setback was by no means enormous.
Bank stocks were set to lead the retreat after Moody's warned that a number of them could face credit-rating downgrades after its review is concluded. Bank of America Corp. fell 1.3% in premarket trading, while JPMorgan Chase & Co. fell 0.6% and Goldman Sachs Group Inc. fell 0.7%.
Apple Inc. fell 0.8% in premarket trading, following a rare reversal on Wednesday when the high-flying stock surrendered a 3% gain and closed down more than 2%.
In Europe, the U.K.'s FTSE 100 was down 0.8% and Germany's DAX index was down 1.1% in afternoon trading.
Japan's Nikkei 225 fell 0.2% in overnight trading.
Crude oil fell to $101.20 U.S. a barrel, down 0.6%. Gold fell to $1,718 U.S. an ounce, down 0.6%.
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