The Toronto stock market headed for a slightly higher open but resource stocks were likely to weigh on the TSX amid worries about a slowing global economy.
The S&P/TSX Composite Index tumbled 122.45 points, or 1.1%, to end Tuesday’s session at 11,512.22
Rising prices for oil and metals pushed the commodity-sensitive Canadian dollar up 0.4 of a cent to 98.19 cents U.S.
In corporate news, Vancouver-based miner South American Silver Corp. is protesting Bolivia’s decision to revoke its licence to mine a rich silver deposit in the country and nationalize the project. The licence was cancelled Tuesday following opposition from Quechua Indians who had seized workers employed by the company to press their case.
The stock has lost about half its value in the last two sessions, closing Tuesday at 49 cents on the TSX.
ON BAYSTREET
The TSX Venture Exchange stumbled backward 12.62 points to 1,199.36. The Nasdaq Canada index dipped 8.73 points to 341.69.
ON WALLSTREET
U.S. stocks are poised for a higher start Wednesday following Spain's announcement of drastic cuts as it aims for fiscal responsibility.
Futures for the Dow Jones grew 17 points, or 0.1%, to 12,602, about 30 minutes before the opening bell. Futures for the S&P 500 tacked on 2.6 points, or 0.2%, to 1,338.10, and for the Nasdaq, futures gained one point to 2,579.
Investors began the day welcoming a renewed Spanish focus on fixing its debt dilemma. In a speech to parliament, Prime Minister Mariano Rajoy said the country would cut €65 billion in less than three years by reducing government and raising taxes. Meeting budget deficit reduction targets would require austerity and more efficiency, he said.
The speech came after European finance ministers agreed late Monday to offer the struggling country an initial €30 billion by the end of the month to help bail out its troubled banks. Yields for Spanish 10-year bonds, which have hovered around the perilous 7% level in recent weeks, fell to 6.67% Wednesday.
The U.S. government will release data on the trade deficit at 8:30 a.m. ET and wholesale inventories at 10 a.m. ET.
The trade deficit for May is expected to stand at $48.9 billion U.S., according to a survey of analysts by Briefing.com, down from $50.1 billion U.S.in the prior month. Wholesale inventories for May are expected to have increased by 0.3%.
The Federal Reserve will release its minutes at 2 p.m. ET.
European stocks were mixed in midday trading. Britain's FTSE 100 slid 0.1% and France's CAC 40 fell 0.3%, while the DAX in Germany gained 0.5%.
Asian markets ended mixed. The Shanghai Composite added 0.5% and the Hang Seng in Hong Kong edged higher by 0.1%, while Japan's Nikkei fell 0.1%.
Oil for August delivery rose 96 cents to $84.87 U.S. a barrel.
Gold futures for August delivery fell $2.90 to $1,576.90 U.S. an ounce.
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