Canada's main stock index looked set to edge up at the open on Thursday as soft economic data from world's second biggest economy, China, kept hopes alive of action from major central banks to support declining global growth.
The S&P/TSX Composite index gave back 82.41 points to close Wednesday at 11,781.09. Canada stock futures traded up 0.1%
The Canadian dollar moved up 0.04 cents Thursday morning to 100.61 cents U.S.
Among stocks to watch this morning, Bombardier Inc reported a 14% fall in second-quarter profit on lower revenue in its train division.
Tim Hortons Inc said its profit rose 13% in the second quarter as it benefited from strong U.S. sales.
Manulife Financial Corp fell to a second-quarter loss as weak financial markets forced the company to take a $677-million charge to revalue long-term investment assumptions, but the result beat analysts' expectations.
Canadian Natural Resources Ltd reported a 19% fall in second-quarter net profit on lower oil and gas prices, and further cut spending on natural gas.
ON BAYSTREET
The TSX Venture Exchange backtracked 4.88 points to 1,185.68. The Nasdaq Canada index added 0.38 points to 347.51.
ON WALLSTREET
U.S. stocks were headed for a muted open Thursday as investors digested a handful of economic reports, including the latest data on unemployment claims. Chinese economic data was also in focus.
Futures for the Dow Jones Industrials were flat to 13,120, about 30 minutes before the opening bell. Futures for the S&P 500 shed 0.60 points to 1,397.60, and for the Nasdaq, futures grew 4.75 points, or 0.2%, to 2,711.50
Investors also digested a duo of economic reports out of China early Thursday. Industrial production in the world's second-largest economy slowed for a third straight month in July. However, inflation in China eased to the slowest rate in two-and-a-half years.
Meanwhile, investors will also continue to eye quarterly financial results. Nearly 90% of S&P 500 companies had reported their quarterly results as of Wednesday. Earnings are on pace to grow just 0.9% overall.
On the bright side, 65% of the companies topped Wall Street expectations, higher than the average rate of 62% over the past decade.
Beyond American shores, Europe remains a source of anxiety, with worries about a potential Spanish bailout particularly acute. Borrowing costs for Spain and Italy are uncomfortably high, with the Spanish 10-year yield hovering around 7% and the Italian 10-year yield just below 6%.
European stocks were lower in afternoon trading. Britain's FTSE 100 slipped 0.1%, France's CAC 40 declined 0.2%, while the DAX in Germany fell 0.6%.
Asian markets ended with solid gains. The Shanghai Composite rose 0.6%, and the Hang Seng in Hong Kong and Japan's Nikkei both added more than 1%.
China's annual inflation rate fell to 1.8% in July, the government's National Bureau of Statistics reported Thursday, down from 2.2% in June. That's the lowest inflation rate in two-and-a-half years.
Industrial production slowed to 9.2% from a year earlier in July, according to China's National Bureau of Statistics. The reading marked the slowest rate of growth since May 2009.
Oil for September delivery rose 55 cents to $93.90 U.S. a barrel.
Gold futures for December delivery rose 50 cents to $1,116.50 U.S. an ounce.
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