Canada's main stock index looked set to open lower on Thursday, following a global equity market selloff driven by worries over the possible scaling back of central bank monetary stimulus.
The S&P/TSX Composite Index dropped 113.68 points to end Wednesday at 12,109.89, on top of a 159-point slide on Tuesday. Futures demurred 0.4%.
The Canadian dollar chugged ahead 0.37 cents to 98.30 cents U.S. early Thursday.
Shares of Canadian grocers are expected to be active after Sobeys parent Empire Co Ltd said on Wednesday it is acquiring Safeway Inc's assets in Canada for $5.7 billion, in a move that will nearly double its reach in the country's western provinces.
Mining giant Rio Tinto has agreed to sell its Eagle project to Lundin Mining Corp for $325 million in cash.
Lululemon Athletica Chairman Dennis Wilson sold stock worth $50 million days before shares slumped on the news of CEO Christine Day's surprise departure.
Canada's National Energy Board rejected TransCanada Corporation’s request to review its decision to cut fixed tolls on the company's mainline, a cross-country natural gas pipeline network.
On the economic slate, Statistics Canada reported that its New Housing Price Index rose 0.2% in April, following a 0.1% increase in March
ON BAYSTREET
The TSX Venture Exchange fell 9.07 points to wind up Wednesday at 928.20
ON WALLSTREET
U.S. stock futures were pointing to a lower open Thursday, with the Dow set to extend its worst losing streak of the year.
Futures for the Dow Industrials fell 83 points, or 0.6%, to 14,895. Futures for the S&P 500 dipped 3.6 points, or 0.2%, to 1,606.50, and futures for the NASDAQ swooned 5.75 points, or 0.2% to 2,914.50.
Major indexes in Europe and Asia tumbled, as investors grow increasingly nervous about when the U.S. Federal Reserve and other central banks will begin curtailing stimulus measures.
The withdrawal of cheap money will cut back on the global liquidity that has been propping up markets and helping them reach record highs over the past few months.
In corporate news, shares of newspaper publisher Gannett rallied after it said it was buying Belo for $1.5 billion U.S., a deal that will significantly increase the number of television stations it owns. Shares of Belo were also higher, reflecting the 28% premium that the purchase price represents.
Beauty products company Coty will make its public debut on the New York Stock Exchange after raising $1 billion through an initial public offering that priced share at $17.50 apiece.
Meanwhile, Safeway shares surged 20% after the grocery chain announced late Wednesday the sale of its Canadian operations to Sobeys for $5.68 billion U.S.
Safeway said it will use the proceeds from the sale to pay down $2 billion in debt, buy back stock and support growth elsewhere.
In Japan, the benchmark Nikkei 225 index dropped by 6.4%, putting it firmly in bear market territory, which is at least a 20% drop from its most recent peak. The yen strengthened to 94 per dollar for the first time since early April.
In early Thursday trading major European markets were all down by 1% to 2%.
In Asia, both the Hang Seng and the Shanghai Composite index fell by more than 2%.
Oil prices gave back 51 cents to $95.37 U.S. a barrel
Gold prices fell $7.80 to $1,384.20 U.S.
Related Stories
