After posting its biggest single-day percentage fall in eight weeks in the previous session, Canada's main stock index looked set to open lower on Tuesday as investors expect the U.S. Federal Reserve to begin tapering its monetary easing policy as early as next month.
The S&P/TSX composite index dropped 148.86 points, or 1.2%, to end Monday at 12,588.06
The Canadian dollar dipped 0.35 cents, to 96.32 cents U.S. early Tuesday
CIBC cut the target price on Leisureworld Senior Care Corp. to $12 from $12.75 after the company posted second-quarter results below expectations.
CIBC cut the rating on Partners Real Estate Investment Trust to sector underperformer from sector performer to reflect expectations for below-average total returns over the next 12 to 18 months on a risk-adjusted basis
In the economic docket this morning, Statistics Canada reported that its wholesale trade index plummeted 2.8% in June, with declines pretty much across the board. The loss offset what had been gained in the two months before.
ON BAYSTREET
The TSX Venture Exchange sagged 6.58 points Monday to 936.63
ON WALLSTREET
Stocks could be heading for a fifth consecutive day of losses Tuesday as speculation about when the U.S. will begin to tighten monetary policy continues to dominate.
Ahead of the opening bell, futures for the Dow Industrials eked up three points, to 15,005. Futures for the S&P 500 gained 2.80 points, or 0.2%, to 1,647.70, and futures for the NASDAQ perked 5.25 points, or 0.2%, at 3,075.75
The release Wednesday of minutes from the U.S. Federal Reserve's last monetary policy meeting will be closely watched for clues as to when the central bank will begin tapering its $85 billion U.S. a month in bond purchases.
More signals could come from the Kansas City Fed's annual conference in Jackson Hole, Wyoming, later this week.
Quarterly results were due before the opening bell from companies including J.C. Penney, Best Buy and Barnes & Noble. Home Depot announced a gain in quarterly net profit and raised its guidance for 2013.
European markets were lower in morning trade, with investors tracking losses on Wall Street and paring back risk before the Fed minutes.
Asia markets were also lower across the board on worries that possible changes to the Fed's bond-buying program will suck capital out of regional markets. Japan's Nikkei 225 dropped 2.6%, the Hang Seng lost 2.3% and the Shanghai Composite was off 0.6%.
Shares in China Everbright Securities fell 10% as investors had their first chance to respond to restrictions placed on the broker's activities after trading glitches on Friday and Monday.
Oil prices docked 99 cents to $106.11 U.S. a barrel
Gold prices eased two dollars to $1,363.70 U.S. an ounce.
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