Canada main stock market looked set to open lower on Wednesday after U.S. Federal Reserve officials hinted the central bank would trim its monetary stimulus program as early as next month.
The S&P/TSX composite index tumbled 133.97 points, or 1.1%, to close Tuesday at 12,469.32. Futures dipped 0.2% Wednesday.
The Canadian dollar shed 0.51, to 95.91 cents U.S. early Wednesday
Valeant Pharmaceuticals International Inc raised its full-year adjusted profit outlook and reported a second-quarter profit, boosted by sales in its skincare acquisitions.
Air Canada reported a jump of nearly threefold in second-quarter operating profit as margins improved, and said capacity will increase in the current quarter.
Brookfield Property Partners LP will buy a privately held U.S. real estate company from Japan's Kajima Corp in a $1.1-billion deal that will increase its industrial real estate portfolio.
TransCanada Corp. said on Tuesday it has signed an agreement with Malaysian-owned Progress Energy to transport two billion cubic feet per day of natural gas to underpin the $1.5-billion extension of its NGTL pipeline system in British Columbia
On the economic front, Statistics Canada reported that contractors took out building permits worth $6.6 billion in June, down 10.3% from May and the first decrease in six months.
However, the nation’s number-crunchers added that, despite this decline, the total value of building permits continued to trend upward.
At 10 a.m. ET, the Ivey Purchasing Managers’ for June will be reported by Western University in London, Ontario. Experts are calling for the index to come in around 57.0, in contrast to May’s reading of 55.3.
ON BAYSTREET
The TSX Venture Exchange dumped 10.73 points to end Tuesday 912.88
ON WALLSTREET
Global stock markets and U.S. futures were in the red Wednesday amid new talk that the U.S. Federal Reserve may soon begin easing its stimulus measures.
Ahead of the opening bell, futures for the Dow Industrials sagged 46 points, or 0.3%, to 15,428. Futures for the S&P 500 dipped 5.20 points, or 0.3%, to 1,688.70, and futures for the NASDAQ shed six points, or 0.2%, at 3,112.
Negative market sentiment blamed on hawkish statements from Chicago Fed President Charles Evans and Atlanta Fed President Dennis Lockhart, both of whom indicated that the Fed could begin tapering its bond-buying program as early as September.
The move downward gathered pace Tuesday as U.S. stocks finished lower, with the Dow Jones industrial average experiencing its largest point and percentage drop since June.
Despite the move lower, U.S. stocks have still gained 18% to 21% so far this year.
Earnings continue to roll in Wednesday. Time Warner raised its guidance and reported a 25% jump in operating income, helped by strong revenue from movie blockbusters like "Man of Steel" and television shows like HBO's "Game of Thrones" and "Girls”
AOL reported earnings and sales that beat estimates, and announced plans to acquire Adap.tv for $405 million U.S.
First Solar shares plunged in pre-market trading, a day after the solar panel maker widely misses analysts' estimates on both profit and revenue. First Solar also trimmed its outlook.
Tesla Motors and Green Mountain Coffee Roasters are due after the close.
On the economic front, the U.S. Federal Reserve will release its monthly report on consumer credit at 3 p.m. ET.
Japan's Nikkei 225 index declined by 4% as the yen continued to strengthen. The main indexes in China also dropped.
European markets were lower in morning trading. The Bank of England said it wouldn't raise interest rates until British unemployment falls to 7%, which is unlikely to happen for three years.
Oil prices inched up six cents to $105.36 U.S. a barrel
Gold prices gave up $6.80 to $1,275.70 U.S. an ounce.
Related Stories
