Stock futures pointed to a lower start for Canada's main stock index as U.S. oil prices fell to their lowest level since the global financial crisis.
The S&P/TSX composite index plummeted 157.24 points, or 1.1%, to close Wednesday at 14,036.63
The Canadian dollar dipped 0.02 cents to 76.16 cents U.S. early Thursday
Valeant Pharmaceuticals International said it would buy privately owned Sprout Pharmaceuticals, whose drug became the first approved treatment this week for low sexual desire in women, for about $1 billion plus milestone payments.
Valeant will pay $500 million in cash upfront and another installment next year for Sprout and its controversial pink pill, Addyi.
The Alberta Energy Regulator is investigating a leak on NuVista Energy’s pipeline in northern Alberta that spilled 100 cubic meters, roughly 629 barrels, of oil and water and natural gas emulsion, the regulator said on Wednesday.
The leak on the pipeline, 50 kilometers northeast of Rainbow Lake, was first identified by a helicopter crew during an aerial surveillance flight on Friday, and covered an area approximately 70 by 100 metres.
BMO initiates coverage of Lundin Gold with an outperform (speculative) rating and target price of $5.00, saying the miner’s flagship asset Fruta del Norte is one of the largest high-grade underground deposits yet to be developed in the world.
Gaming Nation reports end-of-fiscal year earnings today, expecting earnings of two cents per share
On the economic front, Statistics Canada reported this morning that 531,700 people drew regular employment insurance benefits in June, up 5,200 or 1% from May.
The agency also told us that wholesale trade rose 1.3% to $55.3 billion in June, more than offsetting the decline in May, on the strength of gains in five of seven sub-sectors. In the second quarter of 2015, wholesale sales rose 2.1% compared with the first quarter.
ON BAYSTREET
The TSX Venture skidded 5.25 points Wednesday to 558.17.
ON WALLSTREET
U.S. stock futures were falling and global markets are severely in the red.
Ahead of the opening bell, futures for the Dow Jones Industrials fell 134 points, or 0.8%, to 17,151, futures for the S&P dipped 15 points, or 0.7%, to 2,057.75, and futures for the NASDAQ swooned 33 points, or 0.7%, to 4,470.75
A batch of results are due before the market open, including Tech Data, Sears, Madison Square Garden, Stein Mart and Kirklands. This afternoon, Hewlett-Packard, Gap and Ross are due to provide earnings updates.
The U.S. government's weekly jobless claims report is due out this morning.
The National Association of Realtors releases July home sales figures at 10 a.m. ET. Sales surged in June, but analysts don't expect the trend to continue.
Also at 10 a.m., the Philadelphia Fed will post its business outlook survey for August. Last month there were signs manufacturing was slowing down, and unemployment data wasn't favorable.
European markets were losing ground in early trading, with a 0.6% fall for Germany's DAX index. In London, the FTSE index shed 0.5%, pushing the index into correction territory.
The Shanghai Composite closed down 3.4% and the smaller, tech-heavy Shenzhen index lost 3%.
Volatility has dominated trading in China over the summer and prompted Beijing to intervene to stabilize markets.
Oil prices eased 24 cents to $40.56 U.S. a barrel
Gold prices hiked $9.30 to $1,137.2 0 U.S. an ounce.
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