Canada's main stock index looked set to open lower on Thursday, after the U.S. Federal Reserve said in its latest statement that economic growth had stalled and as weak German retail sales data hurt investor sentiment.
The S&P/TSX Composite Index gave back 36.12 points to conclude trading Wednesday at 12,794.44
The Canadian dollar shaved off 0.02 cents to 99.84 cents U.S. early Thursday.
Potash Corp of Saskatchewan reported a bigger-than-expected 38% drop in quarterly profit on Thursday as key potash buyers China and India stayed out of the market, but the company forecast a modest rebound in earnings for 2013.
Research In Motion Ltd. on Wednesday unveiled the long-delayed line of smartphones it hopes will put it on the comeback trail, but it disappointed investors by saying U.S. sales of its all-new BlackBerry 10 devices will not start until March.
Other Canadian stocks to watch include Agrium Inc. The fertilizer company’s CEO said it expects North American potash producers to strike a deal with Indian importers in February or March, ending a long standoff
JDS Uniphase Corp. reported a quarterly profit on higher demand for its products used in broadband networks in the Americas.
Rio Tinto Plc said its Oyu Tolgoi project in Mongolia is on track to reach commercial production in the first half of 2013, countering a media report saying broadband networks in the Americas. Turquoise Hill Resources was considering a temporary halt to construction work because of political issues.
South of the border, the Fed on Wednesday left in place its monthly $85-billion U.S. bond-buying stimulus plan, arguing the support was needed to lower unemployment even as it indicated a recent stall in U.S. economic growth was likely temporary.
German retail sales tumbled by their largest amount in over three years in December, preliminary data showed, denting hopes that private consumption can compensate for weaker exports and lift Europe's largest economy this year.
On a day loaded with economic data, Statistics Canada reported that the economy forged slightly ahead in November, growing 0.3%, adding on a 0.1% hike in October, The nation’s number crunchers noted that most major industrial sectors increased production in November.
StatsCan also said that lower crude oil prices resulted in a Raw Materials Price Index sinking 2.0%, in December, while industrial product prices were flat compared to October.
ON BAYSTREET
The TSX Venture Exchange subsided 9.57 points to 1,222.35
ON WALLSTREET
Investors will be looking for positive economic data Thursday to rebound from the previous day's disheartening news on economic growth.
Futures for the Dow Industrials sank 20 points, or 0.1%, to 13,818. Futures for the S&P 500 slid 1.90 points, or 0.1%, to 1,493.40, and futures for the NASDAQ stumbled 8.50 points, or 0.3%, to 2,727.25
The Dow is up more than 6% so far in January, while the S&P 500 has climbed 5% and the Nasdaq is up 4%.
The Dow is just 2% away from its record high, hit in October 2007, while the S&P 500 is about 5% away from its record high, also reached in October 2007.
In corporate news, shares of UPS declined in premarket trading after the shipping giant's fourth-quarter earnings came in below of forecasts. The company's guidance for 2013 was also weaker-than-expected.
Shares of Dow Chemical also declined on an earnings miss.
Facebook shares dropped 7% in premarket trading, after the firm said its fourth-quarter mobile user growth had slowed slightly versus the third quarter. Facebook's fourth-quarter earnings and sales beat Wall Street estimates.
European markets were lower in afternoon trading as weak corporate earnings weighed on sentiment. Results from oil major Shell and drinks group Diageo missed expectations, while Deutsche Bank posted a $3.5-billion U.S. quarterly loss on legal and restructuring charges. Telecoms equipment maker Ericsson bucked the trend, posting strong gains after beating expectations.
Asian markets ended mixed, with the Hang Seng slipping 0.4%
Oil prices fell 40 cents to $97.47 U.S. a barrel
Gold prices slipped $6.70 an ounce to $1,673.20 U.S.
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