Canada’s main stock index was in the red tracking U.S. stock index futures after the U.S. Federal Reserve cited weakening global growth and the recent upsurge in financial market volatility as its reasons for not raising interest rates.
The S&P/TSX composite index fought its way into positive territory 23.38 points to close Thursday at 13,787.16
The Canadian dollar zoomed 0.83 cents at 76.69 cents U.S. early Friday
RBC cut the target price on Barrick Gold to $8.00 from $10.00 to reflect the company’s lower copper price forecasts and other model revisions.
Barclays cut the target price on MEG Energy Corp to $11.00 from $13.00 considering the company’s focus on the balance sheet rather than on growth in the current oil price environment.
Transition Therapeutics Inc is out with earnings today, but is expecting a Q4 loss of $1.22 per share
On the economic calendar, Statistics Canada reported that inflation rose 1.3% in the 12 months leading to August, a rise identical to July.
The consumer price index posted no change in August on a monthly basis, after rising 0.2% in July.
ON BAYSTREET
The TSX Venture Exchange lost 2.06 points Thursday to 551.32
ON WALLSTREET
U.S. stocks look set to open with losses and all European indexes are down in afternoon trading as investors react to the Federal Reserve's decision to leave interest rates unchanged because of concerns about the global economy.
Ahead of the opening bell, futures for the Dow Jones Industrials collapsed 159 points, or 1%, to 16,399, futures for the S&P 500 fell 18.5 points, or 0.9%, to 1,958.75, and futures for the NASDAQ slid 43.5 points, or 1%, to 4,326.25.
Investors should watch Adobe this morning. The shares are sinking by about 3% pre-market after the company released earnings Thursday evening and said it was re-jigging its management team.
The U.S. Conference Board will post its monthly update of leading indicators at 10 a.m. ET. The composite index tracks business cycles, and it fell last month after four months of strong gains.
Germany's DAX index is leading the way down with a fall of nearly 3%. Many other major European indexes are declining by 1% to 2%.
Most Asian markets ended the day with modest gains, but the Nikkei in Japan declined by 2%.
Oil prices sank 72 cents to $46.18 U.S. a barrel
Gold prices hiked $18.80 to $1,135.80 U.S. an ounce.
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